The second half of 2009 will not decline as rapidly as the first, Trichet says. Growth is expected by mid-2010.
Staff projections for GDP are -5.1% to -4.1% in 2009, down from -3.2% to -2.2%
2010 is seen at -1.0% to +0.4% from -0.7& to +0.7%.
Negative inflation rates in the near-term are “not relevant” to monetary policy, Trichet says because of base effects (abnormally high levels a year ago). Medium-term, they see mild inflation but not deflation, “firmly anchored” and risks are broadly balanced.