European Central Bank (ECB) President Christine Lagarde has promised to continue providing financial support to the economy amid the closure of the coronavirus and the government must do the same.
According to Lagarde, the recent increase in Covid-19 cases, new variants of the virus and stringent preventive measures, pose a significant reduction in the economic activity of the European Zone.
Although European inflation has shown encouraging growth in January, it is expected to remain low. So, monetary and fiscal policy is very important to continue in helping to support the European economy.
In addition, President Lagarde also said that although the prospects for recovery are still uncertain, but the start of vaccination campaigns throughout the European Zone will give new hope to the economy.
As restraining measures are lifted and uncertainty is also declining, the central bank expects the recovery to be supported by good financing, growing fiscal policy and rising demand, Lagarde said.
In order to pave the way for continued recovery, Europe needs to maintain and strengthen stimulus measures that proved so effective last year. The ECB is therefore committed to performing its role, in accordance with its mandate.
