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06 May 2021 "Although the recovery in global demand and substantial fiscal stimulus are supporting activity worldwide and in the euro area, uncertainty about the resurgence of the pandemic and the progress of vaccination campaigns continues to characterize the short-term economic outlook. The persistently high rates of coronavirus infections as well as the extension and tightening of the ensuing containment measures continue to act as a brake on economic activity in the short term. Looking ahead, progress of vaccination campaigns and the expected gradual easing of containment measures reinforce expectations of a decisive recovery in economic activity in the course of 2021 ". Thus the ECB in the monthly Economic Bulletin,adding that "the maintenance of favorable financing conditions during the period of the pandemic remains the fundamental prerequisite for reducing uncertainty and strengthening confidence, thus supporting economic activity and safeguarding price stability in the medium term".
According to the ECB, "the economic data, the results of the economic surveys and the high-frequency indicators received indicate a possible new contraction in economic activity for the first quarter of this year, however indicating a recovery in growth in the second quarter. conducted at companies indicate that the manufacturing sector continues to show signs of improvement, supported by solid global demand. At the same time, restrictions on mobility and social interactions still limit activity in the service sector, despite the presence of some signs of recovery Although fiscal policy measures continue to support households and businesses, consumers remain cautious in the light of the pandemic and its effects on employment and income.Looking ahead, the vaccination campaigns underway, which should allow for a gradual relaxation of containment measures, should ensure a decisive recovery in economic activity in the course of 2021 ".
Therefore, "in the medium term, the recovery of the euro area economy should be driven by a recovery in domestic and global demand, supported by favorable financing conditions and fiscal stimulus". The Governing Council has decided to reconfirm the very accommodative stance of monetary policy and "has decided to keep the reference interest rates of the ECB unchanged. Secondly, purchases will continue as part of the purchase program for the pandemic emergency. (PEPP), with a total financial endowment of 1,850 billion, at least until the end of March 2022 and, in any case, until the Governing Council considers the critical phase linked to the coronavirus over.The Governing Council will continue to reinvest the redeemed principal on maturing securities under the PEPP at least until the end of 2023. In any event, the future reduction of the PEPP portfolio will be managed in a way that avoids interference with the appropriate monetary policy stance ".
Third, "the net purchases under the asset purchase program (APP) will continue at a monthly pace of 20 billion. The Governing Council also intends to continue to fully reinvest the principal repaid on the maturing securities under the APP for an extended period of time after the date on which it begins to raise key interest rates, and in any event as long as it is necessary to maintain favorable liquidity conditions and a large degree of monetary accommodation. Finally, the Governing Council will continue to provide abundant liquidity through refinancing operations. The Governing Council is ready to adapt all its instruments, where appropriate, to ensure that inflation converges steadily towards the objective pursued,consistent with the commitment to symmetry ".