In its Monthly Bulletin, ECB said, “looking beyond the disruption stemming from the coronavirus pandemic, euro area growth is resuming with the gradual lifting of containment measures, supported by favourable financing conditions, the euro area fiscal stance and a resumption in global activity.” However, “uncertainty remains extremely elevated, making it very difficult to predict the likely extent and duration of the recovery.”
On inflation, “over the review period (4 June to 15 July 2020), market-based indicators of longer-term inflation expectations have continued to increase slowly towards the levels prevailing as of late February, while survey-based indicators of inflation expectations declined slightly. ”
ECB reiterated that it “continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry.”
