In an interview with Reuters, ECB Executive Board Member Isabel Schnabel, said Eurozone’s Q2 GDP contraction of -12.1% qoq was “very large” but “close to our projection of -13%”. Incoming data also “by and large” support the baseline of June projections. She believed that the economic is close to the baseline with a “strong rebound” in Q3, and there will be a “protracted recovery”.
Despite recent resurgence of infections, “it looks unlikely that we are going to see a full lockdown again”, she added. And this is “precisely what we assumed in our baseline scenario”. As long as the baseline scenario remains intact, “there is no reason to adjust the monetary policy stance”.
