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ECB’s Lagarde Says Virus Resurgence Is a Clear Risk to Economy

  • Central bank meets next week to set policy as pandemic spreads
  • Economists expect stimulus in December; BOE may act next month
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ECB's Lagarde Will Stand Pat, Says Harvard's Greene

European Central Bank President Christine Lagarde said the unexpectedly early pickup in coronavirus infections is a “clear risk” to the economic outlook, in a sign that policy makers are gearing up for more monetary stimulus.

“Most scientists in the euro zone were expecting the resurgence of the epidemic in November or December, with the cold,” Lagarde said in a pre-recorded interview with France’s LCI on Tuesday evening. “It’s come earlier, and from that point of view that has surprised. It’s not a good omen.”