The European Central Bank (ECB) policymakers believe that there should be more support measures for the eurozone economy at the December meeting. This can be inferred from the minutes of the interest rate meeting at the end of October when the central bank took another step. According to the ECB, there is “broad agreement” on new steps.
The minutes highlighted the weakened economic growth as a result of the second corona wave and the reintroduction of lockdown measures in many European countries, as well as the increased risks for bank balance sheets. According to the ECB, this justifies the need to adjust the monetary policy instruments in December, for example by expanding the programs for buying government bonds and corporate bonds.
According to the ECB, the financial markets are expected to take further action in December. ECB President Christine Lagarde has already clearly pointed out additional measures. She said rising contagion rates and lockdowns to contain the pandemic had significantly worsened the near-term economic outlook.