ECB’s Lane weekend comments – European Central Bank must remain a key stabilizer of the euro zone economy

  • He spoke on how low activity reduces labour productivity, weakens corporate balance sheets and saps confidence, leading to a potential downward spiral
  • “There is a clear risk of self-fulfilling adverse dynamics taking hold”

And that the ECB was critical support against this:

  • “To counter these risk factors, it is essential that the ECB acts as a stabilising force and boosts confidence by committing to the preservation of favourable financing conditions” 

The European Central Bank have been nodding to increased bond purchases as part of their support program, read more here:

ECB chief economist Philip Lane spoke on Saturday.

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