European Central Bank leaves door open for more stimulus

Thursday, October 29, 2020

The European Central Bank hinted at more monetary stimulus on Thursday, as the two largest economies in the region prepare for a second national lockdown, CNBC reports.

The bank decided to keep its rates and wider monetary policy unchanged, but suggested that additional policy action in the eurozone could come in December.

“The governing council will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a rollout of vaccines and developments in the exchange rate,” the ECB said in a statement on Thursday.

It said new economic projections in December “will allow a thorough reassessment” of the economy and risks.

“on the basis of this updated assessment, the Governing council will recalibrate its instruments, as appropriate, to respond to the unfolding situation,” the bank added.