Jul 23, 2021 7:00:00 AM | LGT Navigator
LGT Navigator: ECB's Forward Guidance promises open money floodgates for longer
As expected, the European Central Bank has left its key interest rates at record lows and the total volume of the pandemic purchase program unchanged, but has adjusted its forward guidance, i.e. the direction of its monetary policy. Accordingly, the ECB will keep the money floodgates open for a longer period of time in view of the risk that the coronavirus delta variant will jeopardize the recovery in the euro area, and the turnaround in interest rates in Europe seems to have receded into the distance.