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Europe is facing a difficult quarter amid surging coronavirus cases and government lockdowns, the European Central Bank (ECB) Chief Economist Phillip Lane said on Tuesday.

Additional quotes

“The ECB will do its part to keep borrowing costs ultra-low.”

“It’s going to be a long quarter.”

“It’s a contest between progress and vaccinations and other medical progress versus the near-term challenge of trying to get this virus under control.”

Playing down the recent rise in the bond purchases under PEPP, Lane said that there would be a “substantial increase in a consistent way” over a longer period.

“It is an important issue for European policymakers to reflect upon — how to calibrate the European fiscal response, and to make sure it’s sufficient to get through this pandemic.”

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