The ECB has launched extraordinary measures to cushion the economic blow from the pandemic, but Lagarde reiterated that governments needed to share the load with fiscal policy efforts. The fund would be financed through joint EU borrowing and consist mainly of grants. Emergency bond buysOn the eve of the EU’s crunch summit, ECB governors decided to leave key interest rates unchanged. The ECB’s next economic growth and inflation forecasts are due in September and policymakers will probably wait until then before deciding on further action, observers say. “Monetary policy should remain accommodative where output gaps are significant and inflation is below target,” IMF chief Georgieva urged.

Source: Manila Times July 17, 2020 16:30 UTC