In the current environment of risks clearly tilted to the downside, the Governing Council will carefully assess the incoming information, including the dynamics of the pandemic, prospects for a rollout of vaccines and developments in the exchange rate. The new round of Eurosystem staff macroeconomic projections in December will allow a thorough reassessment of the economic outlook and the balance of risks. On the basis of this updated assessment, the Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favourable to ... (full story)

The European Central Bank decided to keep its rates and wider monetary policy unchanged on Thursday, as countries across the region impose fresh lockdown measures to tackle an upsurge in coronavirus cases. It comes as the euro zone battles a rapid increase in the number of Covid-19 infections, leading some governments to implement new restrictions. French President Emmanuel Macron on Wednesday announced a second national lockdown, though schools and factories will remain open. While Germany announced on Wednesday a “light lockdown,” with restaurants, bars and public events closed as of next week. The second wave of ... (full story)