ontario news watch

Europe leaves stimulus running hot ahead of recovery

FRANKFURT, Germany (AP) — The European Central Bank left its key pandemic support for the economy running full blast even as the economy shows signs of recovery thanks to lower virus cases and fewer restrictions on activity in the 19 countries that use the euro currency.

The bank said in its policy statement Thursday that its emergency bond purchases would remain at “a significantly higher pace” than during the first three months of the year. That mirrored language from its last meeting on April 22.

ECB President Christine Lagarde is expected to walk a fine line at her news conference between acknowledging improved economic prospects and underlining that the stimulus will not be withdrawn before the recovery is on more solid ground.

David Mchugh, The Associated Press