An ample monetary stimulus remains necessary to support the economic recovery in euro area economy, said the head of the European Central Bank (ECB).

Following the Bank’s monetary policy meeting on interest rates, Christine Lagarde said the bank decided to reconfirm its accommodative monetary policy stance.

The ECB on Thursday decided to keep interest rates stable, complying with the market expectations.

Regarding fiscal policies, she noted an ambitious and coordinated fiscal stance remains critical, in view of the sharp contraction in the euro area economy.

“Measures taken in response to the pandemic emergency should as much as possible be targeted and temporary in nature,” she stressed.

She also noted euro area activity is expected to rebound in the third quarter as coronavirus containment measures are eased further, although uncertainty about the overall speed and scale of the rebound remains high.

The ECB assesses the balance of risks to the euro area growth outlook to remain on the downside.

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