The ECB continues to launch impulses to undertake the repair of the coronavirus pandemic affecting European countries. The main measure of the body chaired by simply Christine Lagarde has been to develop by 500,000 million the amount of its asset purchase program contrary to the effects of the pandemic (PEPP). In this manner, the total volume of the program reaches 1.85 billion euros. In 06, the ECB already decided to enhance the total amount by 600,1000 million, to 1.35 million.
In addition, he left a message “The approach is to maintain favorable loan conditions.” Thus, extends this horizon of its emergency purchases until finally spring 2022, in addition to incorporating completely new long-term liquidity auctions for financial institutions.
Furthermore, the ECB has extensive the horizon for net tool purchases under the PEPP by being unfaithful months, from June 2021 to March 2022. However, this entity has warned that buys will be carried out until the Governing Local authority or council considers that the “crisis phase” with the coronavirus has ended.
Lagarde has remarked that these favorable conditions They aren’t limited to a single aspect, but make reference to the loan conditions to companies together with households, the yields of company and sovereign debt. “We desire to ensure that these favorable conditions keep on being available to all economic sectors,” he said.
Thus, the Leader of the ECB explained that the company will moderate or accentuate this intensity of its intervention guided by evolution of these conditions, adding that this time horizon of spring 2022 can be extended in case the healing period does not meet expectations.
In this specific regard, it has warned that, rapidly more intense than expected board of the eurozone economy in the finally quarter, the impact of the second samsung s8500 of Covid-19 will cause a shrinkage of GDP in the last quarter with the year, which will slow down the exit from your anticipated crisis.
In this perception, the new macroeconomic scenario of the ECB contemplates a contraction of 7.3% of GDP in 2020, when compared to the 8% drop expected in Sept. 2010, although it anticipates a weaker healing period in the economy next year, when the growth board will be limited to 3.9%, under the 5% previously forecast. However, trying to 2022, the ECB expects a expansion regarding 4.2% of GDP, compared to the previous 3.2%, while for 2023 it expects regarding 2.1%