It will take time before any COVID-19 vaccine has a positive impact on the economy, European Central Bank policymaker Pablo Hernandez de Cos said on Friday, stressing that bold economic policies were still needed because of the pandemic.
New restrictions imposed in euro zone countries to curb the second wave of the pandemic mean that the ECB’s upcoming macroeconomic projections in December would be most likely revised downwards, de Cos added.
Pfizer said on Monday its experimental COVID-19 vaccine was more than 90% effective based on initial trial results, sending its shares higher along with the broader markets.
“The vaccine is very positive news, regarding investor confidence, consumers confidence and economic activity. But I would like to be cautious. In the short term, restrictions will continue across Europe,” de Cos said.
The good news on the vaccine “will take time to translate into economic activity,” he added.
“We are in a second wave across Europe, with negative effects that were not factored into our central growth scenario. Most likely, the December outlook will be revised downwards for these growth projections.”
De Cos however also added that the first signs of success in developing a vaccine meant that worst-case scenarios were off the table.
