ECB Minutes: While there was wide agreement on the need to signal policy recalibration in December, it was cautioned that the Governing Council should not pre-commit itself to specific policy actions

PEPP was proving successful in stabilising market conditions and reducing fragmentation
Members argued that, looking ahead, it would be important to consider the possibility that the pandemic might have longer-lasting effects both on the demand side and on the supply side, reducing potential growth.
Concerns were also expressed about the possibility of non-linear effects arising from financial amplification channels and about the impact of the pandemic on balance sheet positions of firms, households, banks and governments, particularly given the persistence of the crisis.
Overall, it was emphasised that there was no clear trade-off between containment measures required to reduce the spread of the virus and the impact on the economy and it was recognised that, ultimately, concerns about the economy would remain until a vaccine or effective treatment became widely available, which could take some time.
Members emphasised the role of both national and European fiscal policy in cushioning the impact on the economy of necessary containment measures.
In particular, it was regarded as positive news that additional fiscal stimulus was being announced at the same time as new measures to contain the spread of the virus. These new fiscal measures clearly went beyond those assumed in the September staff projections.
It could not be excluded that the euro area, or at least some countries, would experience a double-dip recession
It was noted that taking monetary policy decisions in December would be consistent with prevailing market expectations. However, it was also stressed that the Governing Council was in a position to act at any time, if needed
Full statement