In the post meeting press conference, ECB President Christine Lagarde said economic data have shown some signs of a “bottoming-out” in the economy, alongside the gradual easing of coronavirus containment measures. But “the improvement has so far been tepid compared with the speed at which the indicators plummeted in the preceding two months.”
In the baseline scenario of new economic projections, GDP is expected to fall by -8.7% in 2020 (revised down by -9.5% from March projections), then rebound by 5.2% in 2021 (revised up by 3.9%) and 3.3% in 2022. Balance of risks are to the downside.
HICP inflation is projected to be at 0.3% in 2020 (revised down by -0.8%), 0.8% in 2021 (revised down by -0.6%) and 1.3% 2022 (revised down by -0.3%).
