This from the European session on remarks out of the Bundesbank.
Justin posted the main points:
- Growth could undershoot projections this year
- Early weeks of the rebound were more timid than projected
- That will likely weigh on full-year figure growth as well
- Some restrictions could be introduced in autumn if infections continue to rise
- But unlikely to be as strict as in the past given vaccine progress
Here is the link for a little more.
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On that second point:
- Early weeks of the rebound were more timid than projected
Central banks have been busily assessing how strong the economic bounce had been heading into the renewed outbreaks and restrictions, the view is that if the bounce was strong it gives a better 'base' to rebound from once this current wave passes (Adam expressed concerns on future waves though, link here). Germany's economic strength heading in, as you can see above, was 'timid' says the Buba.
Jens Weidmann is a key player at the European Central Bank, pictured here with President Lagarde.
