Policy-makers at the European Central Bank (ECB) are broadly in agreement that there should be more support measures for the euro area economy at the December meeting. This is reflected in the minutes of the interest rate meeting at the end of October, when the ECB took place.

The minutes refer to the sharply weakened economic growth caused by the second wave of coronaries and the reintroduction of lock-down measures in many European countries, with increased risks for banks’balance sheets. This justifies, in the ECB’s view, the need to adapt the monetary policy instruments in december, for example by increasing the programmes for the purchase of government and corporate bonds.

The ECB says that further action is also expected in the financial markets in december. ECB president Christine Lagarde has already clearly refrained from taking additional measures. She said at the end of October that the increasing prevalence and lockdowns to contain the pandemic have led to a marked deterioration in the short-term economic outlook. In its view, decision-makers at the ECB agree that action is needed.