Repeats ECB Policy Statement in the opening remarks
Highlights:
- incoming data has been weaker than expected
- protectionism, emerging, financial markets remain prominent
- significant stimulus is still needed for inflation over the medium-term
- net asset purchases will continue until the end of the year
Economic analysis:
- data consistent with baseline scenario
- stimulus continues to underpin domestic demand
- private consumption is fostered by employment growth and rising wages
- business investment is supported by solid domestic demand, financial conditions and corporate profitability
- expansion in global activities expected to continue and support exports
- Cites risks related to protectionism, emerging markets, financial turmoil as risk
- domestic cost pressures are strengthening, broadening
- underlying inflation to pick up toward end of year
- inflation to increase over medium-term supported by expansionary policy, economic growth
- loan growth supported by increasing demand
- urges governments to raise long-term growth potential and reducing vulnerabilities
- reform implementation must be stepped up substantially
- broad-based growth calls for rebuilding fiscal offers. important in countries where government debt is high
