1/27, 10:43 AM (Source: TeleTrader)
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ECB's Knot: 2nd lockdown impact less severe

Member of the European Central Bank (ECB) Governing Council Klaas Knot (pictured) stated on Wednesday the economic impact of the second lockdown, introduced throughout the continent to curb the spread of COVID-19, would be less severe than the first one, leaving "room for optimism" after the summer.

Knot stressed, however, the forecast depended on the roll-out of vaccines against the disease. Speaking further on the ECB's policies, he said it was still "too early" to talk about "exit from low rates" but also noted there was "room for a rate cut."

Knot added the side effects of the current monetary policy were "worrying," but that the ECB was ready to "act" if finance conditions worsened due to market stress.

Breaking the News / JR