The European Central Bank (ECB) maintains its monetary policy and makes no change. The conclusion of today’s interest rate meeting of the ECB is: It was a “normal” interest rate meeting. ECB President Christine Lagarde reflected on monetary policy to date and mentioned the high level of uncertainty. The first fire after the outbreak of the corona pandemic has been extinguished. Now the second phase begins: no new fire may come out of the smoldering fire.
Lagarde made it clear that politics was the most important thing now. The further economic development also depends on whether the 750 billion euro reconstruction fund of the EU will be created. Overall, the tone was less pessimistic than in previous months. The relaxation of the containment measures also brightened the cloudy mood in the hallways of the ECB building.
After all the difficult months, it was a pleasant session today. There was time to reflect. It is a matter of having the measures introduced implemented and awaiting their effects. It is a good thing. There is currently no need for hasty further actions. The European monetary authorities are still ready to help. But now it has to be about targeted help. The time of the watering can principle, in which as many as possible benefit, is over. The second phase of fighting the crisis has begun.
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