ECB maintains current policy position pending Eurozone assessment

The European Central Bank has just announced that it is assessing the impacts of the latest surge of coronavirus across the eurozone economy and, until this process is completed, it will be maintaining its current “very accommodative” monetary policy stance.

This follows the aggressive stimulus package announced last month, which saw an expansion of the ECB’s emergency bond-buying programme to €1.85tn, with an additional €300bn allocated to the ultra-cheap loans it provides to banks. At the time the ECB stated that these measures are designed “to preserve favourable financing conditions over the pandemic period.