The Omicron mutation must cause significant damage to the eurozone economy in order for the ECB to decide to further support the economy, the board member stressed. of the European Central Bank, Martins Kazaks.
It is still too early to say how the new executive will affect the continent’s recovery, said the governor of the Latvian central banks.
As it stands, the extraordinary bond purchase program (PEPP) of 1.85 trillion. “It should end as scheduled in March,” he said.
“At the moment, we do not know how the Omicron mutation will evolve. Unless it spreads to major and major negative growth prospects, I see no reason to change March, a deadline that the market has been waiting for some time. “and which we have communicated in the past”, he stressed in an interview.
The ECB is preparing for a crucial meeting on 16 December, when its members plan to determine the future of their economic stimulus tools.
Along with the increased risks for the coronavirus, inflation will be at the heart of the debate.
While scientists continue to weigh the dangers posed by Omicron, Kazaks says the ECB has time to change its policy early next year, if the health situation justifies it.
“If in February we see that it is painful, then of course we can change our views and that is the issue of flexibility. In my opinion it is possible to restart the PEPP or increase the amount if it proves necessary,” he said.
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Source From: Capital
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