国际英语资讯:ECB refrains from rate cut, steps up liquidity measures amid COVID-19 concerns_时事

国际英语资讯:ECB refrains from rate cut, steps up liquidity measures amid COVID-19 concerns

In a macro-economic analysis, Lagarde said that the risks surrounding the euro area growth outlook are "clearly on the downside." The spread of the coronavirus adds a new and substantial source of downside risk on top of risks related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets, she said.

Governments and all other policy institutions are called upon to take timely and targeted actions to address the public health challenge and mitigate its economic impact, Lagarde said, stressing that "the response should be fiscal first and foremost."

"We regard the current shock as severe but temporary, if the right measures are taken by all the players," she noted.

The ECB welcomes the measures already taken by several governments to ensure sufficient health sector resources and to provide support to affected companies and employees, Lagarde said.

Immediately following the ECB announcement, German shares extended losses in the morning session, tumbling to a record low of 9308.15 points.

Although the absence of a rate cut has disappointed markets, Lagarde noted that "we are certainly not at the reversal rate, not at the lower bound," defending the decision to hold rates and dismissing worries over ECB's too limited policy space.

She said the new policy package was a unanimous decision among the Governing Council members, which is "the most efficient, the best targeted, most focused set of tools" to address the current risks.