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Essentials of Monetary Policy

European Central Bank (ECB). Several Measures Introduced to Offset the Impact of COVID-19’s Second Wave on the Economy

December 10, 2020
François Dupuis, Vice-President and Chief Economist
Mathieu D’Anjou, Deputy Chief Economist • Hendrix Vachon, Senior Economist

Financial markets may have been encouraged by the arrival of vaccines against COVID-19, but the ECB is highlighting the significant negative impact that the second wave is having on the economy. The fourth quarter of 2020 is expected to post negative growth, and the beginning of 2021 should also prove difficult. The measures announced today will help offset the economic effects of the second wave of COVID-19. Moreover, the ECB remains prudent when it comes to the vaccination campaign, stressing the difficulty in achieving herd immunity and the risk of a resurgence of the virus.