European Central Bank (ECB) President, Christine Lagarde said on Thursday that the Coronavirus pandemic will weigh on the eurozone growth over the coming months but longer-term risks are receding and growth will pick up once lockdown measures can be lifted, according to Reuters.
“Overall the risks surrounding the euro area growth outlook have become more balanced, although downside risks associated with the pandemic remain in the near term,” said Lagarde in a statement that echoes the bank’s policy stance after its March meeting.
Repeating the bank’s standing guidance, Lagarde said that the 1.85 trillion euros set aside in a Pandemic Emergency Purchase Programme may not have to be spent in full but the ECB also reserved the right to increase this quota, if market conditions warrant.