The euro area economy will not return to pre-pandemic level until 2021, European Central Bank Executive Board Philip Lane said in an interview with El Pa?s.
The future depends much on how quickly the restrictions on economic activity can be eased and also how people adapt to living with the coronavirus.
“From today’s perspective, it looks in any case unlikely that economic activity will return to its pre-crisis level before 2021, if not later,” Lane said.
The banker said the ECB is continuously monitoring the situation and are ready to adjust all instruments if necessary.
The central bank took all steps to make sure that the necessary monetary and financial conditions for the restoration of economic activity are in place, in line with the easing of the containment measures, Lane said.
“If we see that financial conditions are too tight, or the pressure on individual bond markets is not reflecting economic fundamentals, we can adjust the size or duration of our purchases, which we can anyway allocate flexibly over time and market segments,” he said.