Warning from ECB Official for Incentives
Warning from ECB Official for Incentives – A warning came from Isabel Schnabel, Member of the Board of the European Central Bank (ECB) regarding the hopes of great Incentives. Schnabel predicted that the incentives for the pandemic would last longer than expected. At the same time, Schnabel made the assessment that “This should reflect our policy decisions”.
European Central Bank (ECB) Board Member Isabel Schnabel said the bank should focus on maintaining current financial conditions rather than announcing a massive stimulus package that exceeds market expectations.
Speaking about a week before the interest rate decision of the ECB Executive Council, Schnabel predicted that the support against the pandemic would be longer than expected, saying: “This should reflect our policy decisions.”
Schnabel emphasized that the costs of borrowing fell to record lows due to monetary and financial incentives. She also pointed out that it is very important that these incentives continue until the crisis ends.
Schnabel says, “We should focus on preserving current situations rather than relaxation. “If something should be done that does not meet the expectations of the market, we must do it.”
Economists expect the ECB to raise the 1.35 trillion euro pandemic wealth purchase program by roughly 500 billion euros and hope the process will be extended until the end of 2021 for at least 6 months.