In ECB’s monthly economic bulletin, it’s noted the recent data and survey results suggest “somewhat weaker growth” in Q2 and Q3. The softening of growth can be ” primarily attributed to weak global trade and the prolonged presence of uncertainties.
The Governing Council underlined the need for “highly accommodative” monetary policy stance for a “prolonged period of time”. And if medium-term inflation outlook continues to fall short, ECB is “determined to act”, in line with the commitment to “symmetry” in inflation target.
ECB also reiterated it “stands ready” to adjust all of its instruments”. And the Governing Council has tasked the relevant Eurosystem Committees with examining options, including ways to reinforce forward guidance on policy rates, mitigating measures such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.
