The European Central Bank (ECB) unveiled a newly reformulated, more ambitious inflation target. Without new mechanisms to achieve it, however, we believe inflation will remain stubbornly stuck well below 2%.

The conditions for a relatively quick and robust rebound rest on the success in containing the virus within a reasonable horizon, and a well-calibrated economic policy response.

The European Central Bank (ECB) didn’t follow other major central banks and refrained from cutting interest rates in response to the coronavirus outbreak. This signals a shift in the central bank’s preferred policy tools – read more.

The European Central Bank (ECB) is expected to follow the U.S. Federal Reserve (Fed) and announce monetary easing measures on Thursday, if not before. With policy rates already at negative levels, we expect focus on targeted lending and asset purchases, and less emphasis on risk free interest rates. Read more.