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Warning for the ECB

Warning for the ECB

Another support by ECB for the eurozone economy will be lower than expected, according to forecasts of a Reuters poll of economists. ECB approved pandemic emergency purchases by half a trillion euros to 1.85 trillion euros and extend the programme for nine months.

Survey showed, that over 70% of economists, or 28 of 39 who replied to an additional question, said the ECB's latest policy moves would have little impact on the eurozone economy.

Christoph Weil, senior economist at Commerzbank pointed out that: “Interest rates are already so low and policy is ultra-loose, so for now, monetary policy cannot impact investment or consumer demand. Thus, we do not think the ECB can influence the economy strongly at this time."

On the other side, we can indicate positive signs from the Germany which reported positive price growth this month for the first time in half a year. Positive sign of growth was the result of tax cuts introduced to stimulate consumption during the pandemic crisis. Price growth can weigh on in the wider euro area soon.

Performance of DAX index (