The risks posed by the covid-19 pandemic in the eurozone economy have increased and are expected to continue into 2021. The European Central Bank (ECB), therefore, is considering making further adjustments to its monetary policy measures.
"While all options are on the table, the pandemic emergency buying program and targeted long-term refinancing operations have proven their effectiveness in today's environment and can be dynamically adjusted to respond to the evolution of the pandemic. Therefore, they are likely to continue being the main
tools for adjusting our monetary policy ".
The ECB president also urged caution about optimism about advances in vaccines against covid-19. This week, Pfizer and BioNTech announced that their vaccine has shown more than 90% effectiveness in preventing covid-19, according to preliminary studies.
"Although the latest news about a vaccine looks encouraging, we can still face recurring cycles of accelerated viral spread and increasingly strict restrictions until generalized immunity is achieved," she said.
Lagarde pointed out that the blocks due to covid-19 have generated an unusual recession in the eurozone, affecting the service sector more than the industry, and that the recovery from service crises is slower and has a greater impact on jobs.
"It is clear that the downside risks to the economy have increased. The impact of the pandemic will likely continue to weigh on economic activity until 2021. [...] In addition, weak demand and the economic downturn are weighing on inflation, which should remain in negative territory for longer than previously thought ", she said. "The evolution of the exchange rate may have a negative impact on the inflation path".
Since the beginning of the year, Bitcoin has risen by 112%, not to mention that due to the coronavirus turbulence in March it was costing close to $ 4,000. Now, regardless of American electoral confusion and the high risk of the European economy, the currency is trading above $ 15,800 per unit, consolidating itself once again as a refuge from uncertainty.