European Central Bank officials will set policy this week against a backdrop of investors betting on a global upturn even as the euro zone remains mired in pandemic lockdowns and painfully slow vaccinations.
President Christine Lagarde will need to test her institution’s current stimulus plans against the challenges presented by those contrasting situations.
While some of her colleagues have signaled concern over rising global bond yields, driven partly by the faster vaccine drive and bigger stimulus plans of the U.S., others are taking it in their stride for now.
Investors will be watching Monday’s bond-buying data to see if the ECB ramped up purchases last week.
