The European zone economy is seen to be still struggling in the face of a pandemic crisis with cases of infection increasingly showing unhealthy figures especially in Germany as Europe's largest economy.
According to Jens Weidman as a member of the European Central Bank (ECB) committee and also the President of the Bundesbank, the European economic outlook depends on the Covid-19 pandemic crisis situation and developments after the economic closure.
Policy makers in Europe however do not see the second wave of Coronavirus as having a worse impact than the first wave.
He added that the government should also work to find a way to redevelop the economy and not expect the central bank to continue to keep interest rates at a low level forever.
However, according to him, the change in interest rate policy requires a longer period to occur.
The government however still needs to be prepared for interest rate hikes and not take lightly on government debt.
For the effect on currency movements, the Euro is seen to be trading stable in the market until the end of 2020 which is also supported by the significant depreciation of the US dollar since the pandemic began.
