- As expected, at today’s meeting the Governing Council did not take any policy action and maintained its long-held easing bias.
- While short-term risks related to the pandemic were acknowledged the Governing Council still sees the situation broadly in line with the economic scenario painted at the last meeting.
- The EUR strength remains a matter of concern and the ECB watches exchange rate developments “very carefully”.
- All in all, further monetary policy action is not on the table for the time being. Instead the importance of fiscal policy action and of the Recovery and Resilience Facility was emphasized. Looking further ahead, the evolution of the pandemic and of lockdown measures beyond Q1/21 is key.