Latest Covid wave shouldn't change economic outlook much - ECB's Villeroy

BY Reuters | ECONOMIC | 11/29/21 03:35 AM EST

PARIS, Nov 29 (Reuters) - The latest wave of COVID-19 and the emergence of the new Omicron strain is not expected to have much impact on the economic outlook, ECB policymaker and French central bank head Francois Villeroy de Galhau said on Monday.

"Obviously, we must monitor closely the latest COVID developments, and the new Omicron strain," Villeroy told an online financial conference.

"But the economic effects of the successive waves have proven so far to be less and less damaging, and this one shouldn't presumably change the economic outlook too much." (Reporting by Leigh Thomas Editing by Gareth Jones)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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