March 5, 2021

The ECB is cautious about the prospect of low rates over a long period of time

"The ECB will resume the strongly accommodative bias and this will govern along a long horizon," said the director of macroeconomic and financial analysis of the Mapfre Studies Service, Gonzalo de Cadenas.

In its meeting this Thursday, the issuing institute has opened interest rates at the door in the coming months and has anticipated that it is "ready" to act in case inflation continues to deviate in the medium term from its objective . Tools such as segmentation of the ease of deposit rate or new net purchases of assets are on the table.

In this sense, the decision to wait until September, when it will have new macroeconomic projections, has been seen as a cautious step.

"The prudence with which the ECB is setting the timetable for the adoption of these measures reflects the complexity of effects and also the willingness to wait to see the evolution of the European economy in the coming months," explained the partner responsible for the financial sector of KPMG for the region of Europe, the Middle East and Africa, Francisco Uría.

The president of the ECB, Mario Draghi, justified this new package of measures referring to the slowdown of the latest macroeconomic data, the weakness of the manufacturing sector, geopolitical factors, the risk of protectionism and the weakness of emerging markets.

"Even looking towards the long-term future, a normalization of monetary policy cannot be seen," warned DWS economist for Europe, Ulrike Kastens, who added that he doubts that these measures are "sufficient" to generate momentum "significant" economic situation that compensates for the slowdown in the world economy.

On the other hand, the equity advisory and management firm Diaphanum considers that "the margin of interest is low in the current type scenario", as well as if net asset purchases are resumed, "the increase in the bubble of assets will be encouraged. government bonds. "

. (tagsToTranslate) ECB (t) shows (t) prudent (t) perspective (t) period

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