10/30, 10:38 AM (Source: TeleTrader)
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ECB's Mersch: Outlook took turn for worst

European Central Bank executive board member Yves Mersch said on Friday that the economic outlook has "suddenly taken a turn for the worst" given the surge in coronavirus infections and corresponding lockdowns across the continent.

However, Mersch said that policymakers intend to "play their role" during this second wave of COVID-19. The Governing Council is in agreement that "we need to recalibrate to be at the highest degree of efficiency," he added, as indicated earlier in the monetary policy announcement from the ECB.

Furthermore, Mersch stated in his online speech that rate cuts remain "an available instrument" but that the Governing Council "will assess the potential negative effects." Finally, he reiterated that the ECB encourages an appropriate fiscal response to the ongoing crisis.

Breaking the News / JC