February 27, 2020 / 11:36 AM / in 3 months

ECB won't be able to ignore risks if virus persistent: Schnabel

LONDON (Reuters) - The European Central Bank won’t be able to ignore the risks if the coronavirus gains a firm foothold in Europe, ECB Executive Board member Isabel Schnabel said on Thursday.

In response to a question on how monetary policy can respond to coronavirus, Schnabel said: “If it turns out that the coronavirus becomes more persistent...we cannot look through it.”

“We’re still facing a lot of uncertainty over how coronavirus will evolve,” she added.

Money markets have started pricing in another 10 basis points cut to the ECB’s already-negative interest rates by the end of the year.

Reporting by Dhara Ranasinghe and David Milliken, Editing by Marc Jones

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