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The European Central Bank (ECB) chief economist, Philip Lane, in a prepared speech about the central bank’s monetary policy response to the coronavirus pandemic, said that we see some signs of initial recovery.

Key quotes:

  • Evidence tilts the balance towards asset purchases rather than rate cuts as the more efficient tool in current circumstances.
  • Anchoring the risk-free yield curve at exceptionally low levels is necessary but not sufficient condition for ensuring that the overall stance of monetary policy is appropriate.
  • Plausible that it will take a sustained period of improving economic and public health conditions before the confidence is fully operative.
  • The outcome of negotiations about the EU recovery fund will be an important factor in determining the future path for the Euro area economy.
  • Will be unusually difficult for several reasons to extract signals about the medium-term prospects for the economy and the inflation path.