In the post meeting press conference, ECB President Christine Lagarde said that while Eurozone real GDP could have contracted again in Q1, data pointed to a “resumption of growth” in Q2. Progress with vaccinations, should “pave the way for a firm rebound in economic activity in the course of 2021”.
Near-term risks on growth continue to be “on the downside, but medium-term risks remain “more balanced”. Headline inflation is “likely to increase further in the coming months”, reflecting “changing dynamics of idiosyncratic and temporary factors”. These factors can be expected to “fade out” early next year.