ECB predicts slow recovery.
In her appearance on Tuesday, Christine Lagarde, president of the European Central Bank (ECB), has warned that she does not estimate a complete economic recovery in the Euro Zone until the end of 2022.
Lagarde fears that instead of a V-shaped rally the rebound will be more shaky, picks up FX Street. He claims that fiscal and monetary policies must go hand in hand.
In an interview with The Wall Street Journal, Lagarde points out that the institution is prepared to inject new monetary stimuli to support the economic recovery of the Eurozone in the face of the negative effects of the coronavirus pandemic, even reducing reference interest rates below from zero.
Lagarde warns that Europe’s economic recovery appears “a little more unstable” amid a second wave of infections in countries like France and Spain.
As for the negotiations between the European Union and the United Kingdom on Brexit, Lagarde has said that while the ECB hopes for the best, it is already preparing for the worst.