The European Central Bank (ECB) is more focused on the economic impact of the Covid-19 pandemic based on the minutes of the policy meeting issued on Thursday. This report indicates an indication that there may be more stimulus by the end of this year.
European countries are currently facing a range of risks ranging from the strong euro currency, the higher Covid-19 infection rate to the US presidential election, which has burdened economic growth and consumer prices.
Economists think the Lagarde press conference could be interpreted as a re-emphasis on the ECB message due to rising uncertainty in the economy and exchange rates.
The minutes of the September meeting showed that the ECB was more concerned about inflation and the euro currency which could affect the economy. In the Lagarde press conference, there were those who questioned the ECB's commitment but there were expectations that the ECB would increase bond purchases either by increasing the amount in the pandemic emergency purchase program or through the public sector purchasing program. "
However, the action may be postponed until December as policymakers need more information before making a decision.
