ECB WATCH | Adjust, add and assure

Summary

With COVID-19 led disruptions portending an unprecedented crisis across the Euro Area, that could lead growth to decline between -5% and -12% according to Ms Lagarde, the ECB took further actions today to ensure ample liquidity conditions

Key points

• Key points:
• The ECB unexpectedly extends liquidity facilities, with a new liquidity program and more flexible conditions for the current TLTRO-III
• The asset purchases programs remained unchanged. The PEPP is certainly the instrument that will be used if further action is required
• The ECB is worried on the macro (expecting a sharp fall in GDP of between -5% and -12% this year) and on the coordinated fiscal response

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