Thoroughly from the point of view of analysts, currency and market traders can expect more bond purchases, lower costs for banks and even changes in interest rates from the European Central Bank.
The central bank had signaled on Thursday that it would consider implementing more monetary stimulus in December. The announcement follows France and Germany's decision to implement a curfew which has had a significant impact on the economy.
Following the outbreak of the second wave, the ECB launched a government bond purchase program as a framework to stimulate the economy. The Pandemic Emergency Purchase Program is expected to continue until June 2021 with a total of 1.35 trillion euros ($ 1.51 trillion) originally.
At least four analysts expect the program to be extended. In addition, a handful of economists also expect the ECB to extend its lowest lending rate to -1% as part of the stimulus package.
On the other hand, the ECB has implemented low rates since the country's debt crisis in 2014. At the same time, negative rates are also a tool of monetary policy, aimed at supporting bank lending and supporting the real economy.
Coupled with the indicators given by Lagarde, some analysts are of the view that it is possible that the deposit rate will be lowered to -0.5%.
However, it all depends on the economic development of the European zone.
