5/22/2020, 1:32 PM (Source: TeleTrader)
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ECB: V-shaped recovery can 'probably' be ruled out

The European Central Bank (ECB) released on Friday account of the monetary policy meeting held on April 30, saying that despite market liquidity "progressively improving," financial markets continue to show "signs of fragility."

The ECB asserted the €750 billion Pandemic Emergency Purchase Programme (PEPP) established itself as an "important anchor of stability for euro area bond markets," and contributed to "easing financial conditions and stimulating issuance."

When it comes to the economic indicators, ECB's executive board member Philip Lane said that "survey data signaled a sharp and deep economic downturn regarding the external environment," while the reports for the Eurozone showed an "unprecedented decline."

Members of the ECB board concluded the "mild" scenario for the coronavirus pandemic has been too optimistic, adding a V-shaped economic recovery can "probably be ruled out." On the other hand, they estimated the "severe" scenario presented by ECB staff was "most likely" correct.

Baha Breaking the News (BBN) / ND