Searcher

Published on Thursday, October 29, 2020 | Updated on Wednesday, November 4, 2020

ECB Watch | ECB holds fire, signals more stimulus in December

Against this background, we expect now the ECB to announce a bold package by December, which would include another PEPP expansion, recalibration of liquidity provisions, and modification to the tiering system

Key points

  • Key points:
  • The ECB kept all its main policy settings unchanged, in line with expectations
  • It also conveyed a clear readiness to recalibrate all its policy instruments in December, or even inter-meeting, as warranted by a readjusted economic scenario
  • There are clear downside risks for Q4 due to increase in virus contagions and consequent confinement measures
  • On price stability, the ECB does not foresee deflation risks

Documents to download

Geographies

Topics

New comment

Be the first to add a comment.

Load more

You may also be interested in