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ECB to leave policy settings unchanged

Having adjusted their policy settings in December, policymakers will be happy to sit out the meeting next week and repeat the mantra that they will do whatever is required to support the euro-zone through the pandemic. Their main concern will be that rising virus numbers and the slow vaccination rollout mean that restrictions stay in place beyond Q1, in which case the recovery will be delayed. But if so, the ECB would simply extend its current support measures for even longer.

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