• ECB: uncertainty in the short term, but net recovery in 2021

  • ECB: Lagarde, expected solid rebound of the economy in the course of 2021

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June 10, 2021 No change of course for the ECB. The Governing Council, reads the note released at the end of today's meeting, "has decided to confirm the very accommodative stance of its monetary policy", leaving interest rates unchanged - on main refinancing operations, on marginal refinancing operations and on deposits with the central bank - 0.00%, 0.25% and -0.50% respectively.



Lagarde: "Economy accelerates, inflation below target, no policy tightening"

"The latest data show a dynamism" in the performance of the Eurozone economy for which "we expect an acceleration in the second half of the year thanks to the recovery in consumption, strong global demand and an accommodative monetary policy", an element that remains crucial for a growth on which "uncertainty remains". This was stated by the president of the ECB Christine Lagarde at a press conference after the renewal of the Executive Council.



On the inflation front, the Eurotower estimate is for a "further increase in the second half" after that recorded in recent months before a decline: "in any case, inflation will remain below our target over the horizon", adds Lagarde. , which on the policy front estimates as " a tightening would be premature and would involve risks ".



The

Eurozone inflation rate is

expected to grow at the rate of 1.9% in 2021, 1.5% in 2022 and 1.4% in 2023. These are the new estimates announced today at a press conference by the president of the ECB Christine Lagarde. In the previous exercise in March, Eurozone experts had forecast price growth of 1.5% in 2021, 1.2% in 2022 and 1.4% in 2023.



The ECB raised its estimates on

GDP trends in

the

Eurozone

for 2021 and 2022. For the current year, President Christine Lagarde explained at a press conference, estimates growth of 4.6% and 4.7% for 2023 . Compared to the estimates of March 2021, the forecasts of the ECB have been revised upwards for 2021 and 2022 and unchanged for 2023.



"We expect strong recovery of the services sector"

We expect a strong recovery for the services sector thanks to the reopening of economic activities. Lagarde added that the council's assessments on the economic situation are "more optimistic" than 3 months ago, although obviously a lot will depend on elements of uncertainty such as the progress of the pandemic.



Next Generation EU, key role

"The ECB's board of directors reaffirms the key role of the Next Generation EU program. It is up to the member states to manage the funds productively according to the policies established by the program". "This - added Lagarde - will allow the program to contribute to a faster, stronger and more resistant recovery".