The economic recovery in the euro area "is continuing, mainly driven by the trend in private consumption but also by investments". The ECB writes it in the Economic Bulletin released today. The latest economic indicators, it continues, are on the whole consistent with the continuation of moderate growth in real GDP in the second quarter of 2016. The recovery "continues at a moderate pace, despite the greater uncertainties following the outcome of the referendum in the UK United”, writes the ECB.
Given the situation of uncertainty, however, the Governing Council of the ECB "will continue to monitor economic and financial market trends with great attention and to safeguard the transmission of the accommodative orientation of its monetary policy to the real economy". “Over the coming months, as more information, including new expert projections, becomes available, the Governing Council will be better placed to review underlying macroeconomic conditions, the most likely paths in inflation and growth and the distribution of risks around such trends". However, "if necessary for the achievement of its objective, the Council will act by resorting to all the instruments available within the scope of its mandate".
Finally confirmed the intention to continue with the Qe until the stabilization of inflation. On this point, the bulletin ensures "the intention to carry out the monthly purchases of assets, for 80 billion, until the end of March 2017, or even further if necessary, and in any case until a lasting adjustment is found in the evolution of prices, consistent with its inflation target” which is an annual rate close to but below 2%. The ECB recalls that "overall inflation in the euro area has remained around zero in recent months" and that "overall the underlying inflation measures have not shown clear signs of an upward trend, while the price pressures remained moderate. In addition, market-based measures of long-term inflation expectations have declined further and remain substantially lower than survey-based measures.
