European Central Bank pushes for economic recovery,As the impact of the new crown epidemic continues, the European Central Bank is cautiously optimistic about the macroeconomic prospects of the euro zone. On the 22nd, the European Central Bank announced that it would maintain its dominant interest rate and bond purchase plan unchanged. Analysts believe that this shows that the European Central Bank is trying to avoid early withdrawal from the ultra-loose monetary policy during the epidemic in order to support economic recovery.
The European Central Bank issued a communique on the same day that the short-term economic prospects of the Eurozone are still being dragged down by the rebound of the new crown epidemic and the uncertainty of vaccination. Related surveys and data show that the euro zone economy may shrink again in the first quarter, but will grow in the second quarter.
The European Central Bank believes that due to short-term supply constraints and demand recovery, inflationary pressures are expected to increase this year, but subject to factors such as weak wage increases and the appreciation of the euro, the overall price increase is still limited. In addition, financing conditions in the Eurozone have been relatively stable recently, but there is still a risk of deterioration. Therefore, the European Central Bank decided to maintain the current ultra-loose monetary policy stance.
European Central Bank President Lagarde said that the euro zone’s economic development is mixed. On the one hand, accelerated vaccination brings hope, on the other hand, the virus mutation may mean that restrictions on economic activities will last longer. She reiterated that monetary policy must remain accommodative to promote economic recovery.
