Eurozone's economic activity likely declined sharply in the fourth quarter, but less severely than in the second quarter, due to the resurgence in the coronavirus infections that hurt the services sector considerably as some big countries were forced to impose partial lockdown, European Central Bank President Christine Lagarde said Thursday.
"Overall, the incoming data and our staff projections suggest a more pronounced near-term impact of the pandemic on the economy and a more protracted weakness in inflation than previously envisaged," Lagarde said in her post-decision press conference.
Earlier on Thursday, the ECB unleashed a slew of stimulus for the euro area economy, the main measures being an increase in the provision for asset purchases under its pandemic emergency scheme and more favorable condition for targeted loans to banks to boost lending to the real economy.
The bank increased the size of asset purchases under it pandemic emergency purchase programme, or PEPP, by EUR 500 billion to a total of EUR 1,850 billion. The purchase horizon was extended to at least the end of March 2022 from March 2021.
For comments and feedback: editorial@rttnews.com