- ECB's president Lagarde: ECB ready to adjust all instruments as needed
Market news
4 June 2020
ECB's president Lagarde: ECB ready to adjust all instruments as needed
- Economy has showed signs of bottoming out
- Q2 contraction will be unprecedented
- Prices to continue to be depressed by economy
- ECB determined to ensure needed degree of stimulus
- ECB will do everything possible within its mandate
- Some bottoming out of economy seen in May
- Economy expected to rebound in Q3
- Recovery speed and scale remain highly uncertain
- Level of economic activity and inflation outlook is downgraded due to uncertainty
- ECB sees 2020 GDP growth at -8.7% in baseline scenario vs +0.8% seen in March
- ECB sees 2021 GDP growth at 5.2 % vs. 1.3% seen in March
- ECB sees 2022 GDP growth at 3.3% vs. 1.4% seen in March
- Based on futures, inflation is expected to decline somewhat in coming months
- Over medium-term, weaker demand will put downward pressure on inflation
- ECB sees 2020 inflation at 0.3% vs 1.1% seen in March
- ECB sees 2021 inflation at 0.8% vs 1.4% seen in March
- ECB sees 2022 inflation at 1.3% vs 1.6% seen in March
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