Lagarde has promised a forceful monetary stimulus package in December and urged governments to avail of pandemic relief without delay, reports Bloomberg. European Central Bank President has urged European Union leaders to make joint fiscal support a priority in the wake of increasing virus infections and restrictions.
- Emergency bond-buying and long-term loans to banks will be the prime tools to avail cheap credit to firms, governments, and consumers during the crisis-Lagarde
- Analysts predict ECB to come up with an additional 500 billion euros in bond purchases.
- Lagarde has warned against slowing down efforts to support the economies despite encouraging vaccine developments.
- ECB officials have been persuading investors not to focus too much on the size of the December stimulus package, but its overall effectiveness
- The ECB Governing Council will hold its next policy meeting on December 10 and has already committed to increasing stimulus at that time.
- EU leaders will hold a video conference on Thursday to discuss the joint effort after Hungary and Poland threatened to veto billions of euros of pandemic relief and budget funds.
The Euro is currently losing to the dollar. EURUSD is down 0.29%
