BOE Negative Rates, U.K. Robot Jobs, ECB Green Push: Eco Day

Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help take you start the week.

  • A rare regime-change in economic policy is under way that’s edging central bankers out of the pivotal role they have played for decades
  • The Bank of England is seeking information from U.K. financial institutions on their ability to implement negative interest rates without damaging their business
  • The U.K. risks losing jobs to the Covid crisis that could be resilient to automation while giving a short-term boost to sectors that have no long-term future
  • The European Central Bank isn’t happy with the inflation outlook and will decide “meeting by meeting” whether more monetary stimulus will be needed, Chief Economist Philip Lane said
    • The ECB must maintain its expansive monetary policy for some time to counter deflation risks, Governing Council member Ignazio Visco said
    • Rising public debt levels resulting from the pandemic shouldn’t be seen as a threat to the ECB’s independence, Executive Board member Isabel Schnabel said
    • A push for a ECB green lending program to help the fight against climate change has run into skepticism despite attracting the interest of President Christine Lagarde
  • The Swiss economy will shrink less than expected this year, thanks to a strong recovery in consumption and investment after pandemic restrictions on activity were relaxed
  • Sweden is about to find out just how much of a game changer the coronavirus has been for its economy
  • The guardians of the global economy will gather this week under the cloud of the worst recession since the Great Depression, and a recovery dependent on scientists finding a coronavirus vaccine — read our full week ahead here
  • The vast majority of International Monetary Fund loans extended during the Covid-19 pandemic have suggested or demanded spending cuts that would worsen poverty and inequality, charity group Oxfam says
  • Hopes for a rapid recovery from the Covid-19 shock are effectively gone, writes Tom Orlik

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