ECB Keeps Policy Unchanged, Sees Scope For Rebound

• The European Central Bank left policy unchanged as expected on Thursday, keeping copious stimulus flowing even as it saw reasons to expect a firm rebound of the euro area economy this year.
• The ECB is keeping borrowing costs pinned near record lows via massive bond purchases to see the 19-country currency bloc through a scarring recession that has kept schools, shops, restaurants, and hotels closed for most of the last year.
• But growth is expected to rebound quickly from mid-year as COVID-19 infections are brought under control, the pace of vaccination picks up and restrictions are removed, raising questions about just how much ECB help is still needed.
• "There are clearly signs of improvement," President Christine Lagarde told a news conference. "Progress with vaccination campaigns and an envisaged gradual relaxation of containment measures underpin expectations of a firm rebound in economic activity in the course of 2021."
• She stressed the overall situation was still "clouded with uncertainty", however, due to factors including the possible spread of new virus variants to risks to financing conditions and continued pressures on struggling sectors of the economy.

(Source: Reuters)