The European Central Bank will Keep Policy Unchanged after Massive Emergency Stimulus Helped Calmed Markets






A surge in coronavirus cases that threatens to pinch consumer spending and job gains just as some stimulus programs are due to expire has Federal Reserve policymakers worried, with at least one pledging more support ahead from the U.S. central bank. “We have a lot of accommodation in place; there’s more that we can do, there’s more that we will do,” Fed Vice Chair Richard Clarida told CNN International on Tuesday. There is “no limit” to the amount of bond buying the Fed can do, he said, adding that the Fed could also ease policy further with forwarding guidance and will keep its lending backstops in place as long as needed. (Reuters)

Christine Lagarde signaled the European Central Bank will keep policy unchanged at its next meeting after its massive emergency stimulus helped calmed markets. Speaking in an interview with Financial Times published on Wednesday, the ECB president said that measures unleashed in the wake of the pandemic have “demonstrated their efficiency, their effectiveness.” The Governing Council’s next decision is in just over a week, its first since it almost doubled the size of its pandemic purchase program to 1.35 trillion euros ($1.52 trillion). (Bloomberg)

Source: Danareksa Sekuritas Debt Research

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