Also on Thursday, the ECB's Supervisory Board, the banking watchdog of the European Union (EU), said it will provide temporary capital and operational relief, including Pillar 2 Guidance, in response to the coronavirus shock, and will delay this year's banks stress test until 2021.
GOVERNMENT ACTION IN FOCUS
The ECB has turned on the money tap and taken risks, said Stefan Kooths, an economist with German research institute IfW Kiel. Securing banks against credit risks would be a task for states, not monetary policy, he said.
Kooths, however, backed the ECB's decision to hold rates, saying that an even lower negative interest rates would have made liquidity maintenance for banks and companies even more expensive.
"Despite these actions by the ECB, a return of market confidence requires a proper coordinated action plan from senior EU leadership, including member states governments," Erik Meyersson, an economist from Handelsbanken, a Swedish bank, commented.
The call for more action from the government side was echoed in a report published Wednesday by a group of seven leading German economists, who urged the German government to deviate from the "black zero" budget principle and to use the leeway offered by the debt brake.
Germany's governing parties of the conservative union CDU/CSU and the Social Democratic Party announced on Monday that they will increase public expenditure of 12.4 billion euros until 2024 to offer liquidity support to affected German companies.
【国际英语资讯:ECB refrains from rate cut, steps up liquidity measures amid COVID-19 concerns】相关文章:
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