(Bloomberg) -- The European Central Bank will continue aiding the euro-area economy as the fallout from the pandemic lingers, President Christine Lagarde said.
“Monetary policy will continue supporting the economy in order to durably stabilize inflation at our 2% inflation target over the medium term,” Lagarde said in the 2021 Per Jacobsson Lecture at the International Monetary Fund on Saturday.
“The ECB is committed to preserving favorable financing conditions for all sectors of the economy over the pandemic period,” she said, according to a prepared text released by the ECB.
The ECB rolled out a 1.85 trillion-euro ($2.15 trillion) emergency scheme to support the region during the Covid period. That program is due to end in March and the Frankfurt-based central bank is already preparing to transition to post-pandemic stimulus. It is studying a new bond-buying program to prevent any market turmoil once when crisis purchases end, officials familiar with the matter told Bloomberg last week.
“Once the pandemic emergency comes to an end -- which is drawing closer -- our forward guidance on rates as well as asset purchases will ensure that monetary policy remains supportive of the timely attainment of our target,” Lagarde said.
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