ECB chief economist Philip Lane spoke on Saturday.
- He spoke on how low activity reduces labour productivity, weakens corporate balance sheets and saps confidence, leading to a potential downward spiral
- “There is a clear risk of self-fulfilling adverse dynamics taking hold"
And that the ECB was critical support against this:
- “To counter these risk factors, it is essential that the ECB acts as a stabilising force and boosts confidence by committing to the preservation of favourable financing conditions”
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The European Central Bank have been nodding to increased bond purchases as part of their support program, read more here:
