The European Central Bank yesterday’s announcement to keep rates unchanged and introduce temporary measures and relief for banks, has been widely welcomed by experts.
Dr. Kerstin Braun, President of Stenn Group, an international provider of trade finance, said: “Lagarde has taken her toughest test yet as head of the European Central Bank. Any stabilisation created from the ECB’s easing package last September has now been undermined by the effects of the Covid-19 crisis, so Lagarde has had to act forcefully to offset the effects of the coronavirus. Given infections have been identified in every EU country, the economic outlook is worsening as fast as the disease is spreading.
“Largarde is right to keep interest rates unchanged and introduce temporary relief measures instead. Doing so provides greater flexibility for banks to continue supporting households and businesses, which is essential to keep the economy afloat.