ECB President Christine Lagarde said in Paris today, “the short-term uncertainties are mainly related to global risks – trade, geopolitical and now the outbreak of the coronavirus and its potential effect on global growth.”
“While the threat of a trade war between the United States and China appears to have receded, the coronavirus adds a new layer of uncertainty,”
Though, for ECB, Lagarde said the current forward guidance on interest rates and asset purchases acts as an effective automatic stabilizer.
