In an interview by Le Monde, ECB chief economist Philip Lane said that “from now on, the economy will be growing quickly, but from a subdued level”. Eurozone will only get back to its 2019 GDP level “around this time next year”. Unemployment rate will only fall back to 2019 levels “in 2023”. Hence, “it’s a long journey”, which still requires “sustained” fiscal and monetary efforts.
Lane also said that despite the increases in some Eurozone bond yields, they “remain relatively low and anchored”. He reiterated ECB’s commitment to “maintain favorable financing conditions”. The “significantly” higher level of asset purchases announced in March will continue over the coming weeks. The pace of purchases will be reviewed at the June meeting. He added, “we can increase or decrease our purchases depending on what is necessary to keep financing conditions favorable.”
