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"We
have reasons to believe the second wave will have a less
dramatic impact than the first, for which we were totally
unprepared", Knot told reporters.
"We know a bit more about the virus now, and businesses have
learned to adapt where possible, for instance through online
retail."
But new restrictions to fight the new wave of infections are
starting to slow growth, the Dutch member of the European
Central Bank's governing council added.
"Early indicators point at slowing growth. It is clear the
second wave will dent the recovery, but it is too early to say
by how much."
Knot said the ECB would monitor the need to extend its own
emergency support measures but would need more information on
the economic outlook to make a decision.
But as new lockdowns and other measures spread throughout
Europe, governments and central banks need to keep up their
support for businesses and workers who are at risk of losing
their jobs, he stressed.
"The costs of ending measures too soon are higher than the costs
of maintaining them longer than necessary. And we must avoid
ending them all at once. When the time comes, the exit must be
gradual and predictable."
The Dutch central bank on Tuesday said it would continue to give
the largest Dutch banks extra room to keep credit flowing by
lowering capital demands until at least the end of next year.
(Reporting by Bart Meijer, editing by Larry King)
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