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ECB Just Can’t Escape Grip of Virus on Economy: Decision Guide

  • No change to interest rates or QE expected at Thursday meeting
  • Lagarde has said recovery on track despite renewed lockdowns
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WATCH: The ECB is “chasing a moving target,” according to HSBC.(Source: Bloomberg)

European Central Bank officials will confront a frustrating outlook when they hold their first policy meeting of the year on Thursday, as stricter lockdowns and a slow vaccine rollout across the region threaten to leave the economy jammed up for months on end.

A resurgent outbreak of the coronavirus and worries about new strains of the disease are testing the assumption that their latest stimulus boost will be enough to carry the euro area through a recovery. Political tensions in Italy are adding to uncertainties just as currency strength threatens to dampen a hoped-for rebound in inflation.