ECB considers not only two instruments to support eurozone: chief economist

ECB considers not only two instruments to support eurozone: chief economist

FRANKFURT AM MAIN (Reuters) - The European Central Bank will consider more than two key instruments to support an economy facing irreparable damage from a pandemic-induced recession, ECB Chief Economist Philip Lane told Reuters.

The bloc is heading for a double recession and the ECB has already pledged assistance through emergency bond purchases and cheap loans to banks. However, Lane said officials could discuss other instruments at the December 10 meeting..

"I think it is important not to draw conclusions that we are considering only two programs", - said Lane at the Reuters Global Investment Outlook Summit, 2021.

According to him, the Emergency Asset Purchase Program (PEPP) and Targeted Long-Term Refinancing Operations (TLTRO) "very effective" and will form the basis for the next steps.

An effective coronavirus vaccine will mitigate the most serious risks to the economy, but its spread will take time and much of 2021 will be complicated by pandemic-related restrictions, Lane said..

(Balazh Koranyi. Translated by Olga Vishnevskaya. Editor Marina Bobrova)