• Direct Coronavirus, latest news

The European Central Bank (ECB) will explore "all options and eventualities" to provide support during the shock caused by the coronavirus pandemic to the Eurozone economy due to the "big contraction" of GDP and the deterioration of labor markets that they suggest the unprecedented falls in the latest economic data, as stated by the president of the institution, Christine Lagarde , during her speech at the telematic meeting of the Financial Committee of the International Monetary Fund (IMF).

Regarding inflation, Lagarde has pointed out that the current weakness largely reflects the recent sharp drop in energy prices and has anticipated that general inflation "will decrease even more in the short term" , while the implications of the Coronavirus crises for price behavior in the medium term "are surrounded by high uncertainty."

In this sense, the French banker and former managing director of the IMF itself, has stressed that the ECB is fully prepared to increase the size of its asset purchase programs and adjust its composition, as necessary and for as long as necessary. .

Likewise, Lagarde has reported that the ECB is evaluating new requests for the establishment of more swap lines to provide liquidity in euros after the agreements already reached with other central banks of the European Union, in addition to coordinated measures. implemented by major central banks, including the ECB, to improve liquidity provision in US dollars.

"The Governing Council is committed to doing everything necessary within its mandate to help the euro area overcome this crisis," the Frenchwoman reiterated.

On the other hand, Lagarde has warned that some investment funds have experienced significant capital outflows since the outbreak of turbulence in the markets, although he stressed that the recent measures of the ECB have helped improve conditions, despite which the central bank will continue to closely monitor these non-bank financial institutions . "These events also emphasize the importance of extending macroprudential frameworks beyond banking in the medium term," he said.

According to the criteria of The Trust Project

Know more

  • Christine Lagarde
  • Coronavirus
  • Covid 19

Macroeconomics The ECB delays the review of its strategy for the coronavirus crisis by six months

Macroeconomics The ECB lowers the requirements on banks to facilitate the flow of credit to companies and households

EmpresasBootín: "We must plan as soon as possible the return to work of the youngest and the immunized"