ECB Should Maintain Significant Monetary Stimulus, De Cos Says


2/2
© Bloomberg. A pedestrian wears a protective face mask near the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Wednesday, April 29, 2020. The ECB’s response to the coronavirus has calmed markets while setting it on a path that could test its commitment to the mission to keep prices stable. Photographer: Alex Kraus/Bloomberg

2/2

(Bloomberg) — Significant monetary stimulus should stay in place and steps to boost it further shouldn’t be discounted if they become necessary, European Central Bank Governing Council member Pablo Hernandez de Cos said.

Inflation foreseen to be well below the ECB’s target and recent exchange-rate moves mean there is “no room for complacency,” Hernandez de Cos said in an article in Spain’s La Razon newspaper. It’s also “crucial” to stay flexible in the execution of asset purchase programs to avoid problems of financial “fragmentation,” he said.

With his call for the need to be flexible, the Bank of Spain governor joins other ECB officials making the case for more action should it be needed. Executive Board Member Fabio Panetta said in a Sept. 22 speech that policy makers should err on the side of doing more to keep the rebound on track.

Hernandez de Cos warned that Spain’s economic recovery from the impact of Covid-19 is still partial and fragile. He said some government support programs for the economy should remain in place in a selective and focused way.

He said the authorities should monitor credit risk closely. In Spain there is still room for more consolidation in the banking industry, Hernandez de Cos said.

READ  Sterling slips from five-month highs as Brexit drama goes on

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here