In the post meeting press conference, ECB President Christine Lagarde said “the roll-out of vaccines, which started in late December, allows for greater confidence in the resolution of the health crisis”. But it will “take time until widespread immunity is achieved”. Thus “further adverse developments related to the pandemic cannot be ruled out.
But over the medium term, recovery of Eurozone should be supported by “favourable financing conditions, an expansionary fiscal stance and a recovery in demand as containment measures are lifted and uncertainty recedes.”
Lagarde also said that risks surrounding growth outlook remain “tilted to the downside but less pronounced”. Positive development including vaccination, and EU-UK agreement.
