Christine Lagarde warned on Wednesday that the post-Covid recovery would not be linear, even with a vaccine. She reiterated the European Central Bank’s commitment to supporting the economy in the long term. With, as privileged tools, its emergency program and loans at negative rates for the banks.
For the European Central Bank, the annual Sintra forum is an opportunity to send strong messages on its monetary policy. And this edition, although organized virtually from Frankfurt – far from the heights of the Portuguese city -, was no exception to the rule. This Wednesday afternoon, in her introductory speech, Christine Lagarde warned against excessive optimism.
“The latest news on a vaccine looks encouraging, but we can still face recurring cycles of accelerating the spread of viruses and therefore tightening restrictive measures until widespread immunity is achieved,” warned the President of the ECB. Under these conditions, the recovery may not be linear, but unstable, with frequent stops and restarts. “It will therefore be necessary to” bridge the gap until vaccination is well advanced and the recovery can create its own dynamic, “pleaded Christine Lagarde.