With data from the eurozone still pointing to slow growth, the ECB’s Philip Lane told La Repubblica yesterday that the bank still does not expect recession, and expected the Eurozone economy to recover within the next year or two.
Record-low interest rates, a report released yesterday by the central bank said, have been key in leading to ‘excessive risk-taking in some sectors.’ Some bank members argue that the below-zero deposit rate set by the ECB is forcing banks to ‘pile into’ riskier assets to stay profitable.
The European Commission has indicated its approval of most eurozone members’ draft budgetary plans for 2020, although it has warned that some, including Spain, France, Italy and Portugal, do risk deviating from the Stability and Growth Pact’s terms due to not meeting the debt-reduction benchmark.
Today is the first busy day of the week for economic releases, with consumer confidence flash figures, French business confidence data, ECB monetary policy meeting notes and more.
