ECB President Christine Lagarde said in a speech the central bank’s pandemic response measures has stabilized the markets, protected the supply of credit and support the recovery. That should in turn support the return of inflation towards target.
But at the same time, “the uncertainty of the current environment requires a very careful assessment of the incoming information, including developments in the exchange rate, with regard to its implications for the medium-term inflation outlook.. ECB stands ready to adjust all of its instruments as appropriate.
