ECB's Lagarde says euro zone recovery still fragile
Reuters
Published Jul 02, 2021 04:14AM ET
FRANKFURT (Reuters) - The euro zone economy is beginning to rebound from a pandemic-induced slump but the recovery remains fragile, the European Central Bank's President Christine Lagarde said in an interview published on Friday.
ECB policymakers have started to debate when they should dial back their emergency bond purchases, which have pumped over a trillion euros into the financial system since the start of the pandemic.
Lagarde signalled she was not ready to wind down the Pandemic Emergency Purchase Programme (PEPP) just yet.
"We agreed to maintain (PEPP) until at least March 2022, and in any case, until we judge that the coronavirus crisis phase is over," she told local French daily La Provence. "While the recovery is now beginning to get under way, it remains fragile."
On Monday, Germany's Jens Weidmann and Austria's Robert Holzmann became the first ECB governors to openly debate the prospect of winding down the 1.85 trillion euro programme as the economy improves.
On the same day Fabio Panetta, an Italian member of the ECB's Executive Board, warned against withdrawing support too soon as the pandemic was not yet over.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.