FX.co ★ ECB gives accurate risk assessment for eurozone economy

According to analysts, the European regulator has properly assessed risks for the eurozone economy, correlating them with the stimulus measures introduced to overcome the economic fallout from COVID-19. Christine Lagarde, President of the European Central Bank, believes that the regulator’s aggressive monetary policy in response to the coronavirus pandemic is proportionate to the risks faced by the eurozone economy. The head of the ECB emphasised that the current contingency measures were temporary and resonated with the challenges that the European economy was facing. Christine Lagarde pointed out that the eurozone was undergoing an unprecedented contraction due to the Covid-19 pandemic and lockdown measures taken to contain the spread of the infection. Earlier, the European Central Bank kept the key interest rate at the present level and announced the expansion of its Pandemic Emergency Purchase Programme (PEPP) to 1.35 trillion euros from the previous 600 trillion euros.