The European Central Bank has sent fresh signals that it is gearing up to inject more monetary stimulus into the eurozone’s flagging economy, as its chief economist cited “worrying signals” that financial conditions for banks and small businesses are tightening.
The minutes of last month’s rate-setting meeting, which were published on Thursday, painted a grim outlook for the eurozone economy, concluding it was likely to be “bumpier than previously projected” because of the need for coronavirus restrictions that were likely to continue next year.
“It could not be excluded that the euro area, or at least some countries, would experience a double-dip recession,” they warned.
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