ECB to pave way for more stimulus as recession fears grow

The European Central Bank is expected to resist pressure to unveil fresh stimulus measures on Thursday but it will likely pave the way for action in December as fresh restrictions aimed at containing the coronavirus pandemic fuel fears over a new recession. Having already lined up unprecedented firepower to prop up the 19-member currency bloc’s economy, the ECB is in no hurry to act, as its ongoing bond buying could keep markets calm well into next year. “Lagarde needs to walk a fine line with openness to do more, without pre-committing,” Danske Bank economist Piet Haines Christiansen said.

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