In her IMFC statement, ECB President Christine Lagarde said economic indicators are pointing to a “strong rebound in activity” in tQ3. Though, the rebound is “uneven across sectors and regions”. A sustained recovery remains “highly dependent” on how the pandemic affects consumption, savings and investment decisions.
Lagarde expects inflation to “remain negative over the coming months”, but turn positive again in early 2021. Over the meeting term, ” a recovery in demand, supported by accommodative monetary and fiscal policies, will put upward pressure on inflation.”
She reiterated that “we continue to stand ready to adjust all of our instruments, as appropriate, to ensure that inflation moves towards our inflation aim in a sustained manner, in line with our commitment to symmetry.”