BERLIN, March 18 (Reuters) - The European Central Bank is lowering its growth forecast and the likelihood of recession has increased significantly due to the coronavirus but the bank is ready to act quickly, Executive Board member Isabel Schnabel told Germany’s Die Zeit weekly.
“The ECB is ready to do everything within the framework of its mandate to counter market turmoil which is disturbing monetary transmission because otherwise monetary policy cannot function,” she told the paper, adding national governments also had to act.
“Monetary policy alone cannot solve this crisis. We additionally need a strong fiscal response, ideally on a European level,” she told the paper. (Writing by Madeline Chambers, editing by Thomas Escritt)