ECB President Luis de Guindos said in an interview that the current situation in Eurozone’s economy is “bittersweet”. Q1 was weaker than expected by vaccination is gaining momentum in Europe, which will have a “major impact on the economy”. “We expect the second half of the year to be very positive, even if there is still uncertainty.”
On the matter of tapering, “I don’t have any preconceived notions in this respect,” he added. “The way in which the economy develops will be the deciding factor.” If Europe could meet that target of vaccinating 70% of adult population by summer, and economy starts to pick up speed, “we may also start to think about phasing out the emergency mode on the monetary policy side”.
But he emphasized he was only “referring to a cautious exit from the emergency programme”, but not about raising interest rates. “it should be managed with a great deal of prudence.”
