Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Euro zone at a turning point but too early to debate end of ECB help: Lagarde

06/14/2021 | 01:46am EDT
FILE PHOTO: ECB President Lagarde attends a plenary session at the European Parliament in Brussels

FRANKFURT (Reuters) - The euro zone economy is at a turning point but its recovery must be firm and sustainable before the European Central Bank can debate clawing back emergency support, ECB President Christine Lagarde told Politico in an interview.

The ECB last week agreed to maintain an elevated pace of bond purchases to keep borrowing costs ultra low and policymakers did not even entertain questions about tapering support, even as growth rebounds faster than earlier predicted.

"I am not suggesting that the pandemic emergency purchase programme (PEPP) is going to stop on 31 March," Lagarde was quoted on Monday as saying. "We have plenty of flexibility, but in terms of economic outlook we are heading in the right direction.

"It is far too early to debate these issues," she said about winding down the 1.85 trillion euro PEPP, which is scheduled to last at least until March 31 or until the crisis phase of the pandemic is over.

Economists expect the ECB to start discussing the end of PEPP at their September meeting and the vast majority of ECB watchers polled by Reuters do not expect PEPP to be enlarged and extended again.

Instead, the ECB is more likely to shift policy support to an older and more rigid Asset Purchase Programme, which is likely to remain in place indefinitely as inflation is due to undershoot the ECB's target for years to come.

"We are at a turning point where, bearing in mind alternative (virus) variants, we are on that recovery path, heading firmly towards a return to the pre-COVID-19 level," Lagarde added.

(Reporting by Balazs Koranyi; Editing by Kim Coghill)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.58% 0.62181 Delayed Quote.-0.66%
BRITISH POUND / EURO (GBP/EUR) 0.18% 1.17328 Delayed Quote.4.43%
CANADIAN DOLLAR / EURO (CAD/EUR) -0.56% 0.67165 Delayed Quote.5.01%
INDIAN RUPEE / EURO (INR/EUR) -0.41% 0.011346 Delayed Quote.1.84%
US DOLLAR / EURO (USD/EUR) -0.25% 0.84493 Delayed Quote.3.75%
Latest news "Economy & Forex"
01:15pCentene says COVID-19 costs could rise in coming quarters as Delta poses threat
RE
01:15pLondon judges reverse course to reopen $7 billion Brazil dam lawsuit against BHP
RE
01:09pU.S. consumer confidence at 17-month high; business spending on equipment strong
RE
01:09pMICHAEL STEIN : Investor Steinhardt loses case over George Washington portrait sale
RE
01:03pSouth Africa's rand falls as investors eye Fed meet
RE
12:48pGold nudges up as dollar softens, eyes on Fed meeting
RE
12:47pRising supply costs dulls upbeat quarterly show by industrial giant 3M
RE
12:45pBrazil sugar output down in July, cane yields fall 14%
RE
12:38pUPS shares hit three-month low on worries e-commerce is cooling
RE
12:35pNasdaq set for worst day in 2 months before big tech earnings
RE
Latest news "Economy & Forex"