After the +0,4% recorded between January and March, the Eurozone economy slows down in the second and third quarters. He writes it there ECB in its latest economic bulletin. Braking is mainly explained by “the continued weakness of international trade – we read – in a context influenced by the prolongation of the uncertainties on a global scale, which weigh in particular on the manufacturing sector of the euro area”.
Various reasons for uncertainty continue to weigh on the future: from “geopolitical factors to the growing threat of protectionism and vulnerability in emerging markets”. A scenario which, according to the ECB, "is weakening the climate of confidence, particularly in the manufacturing sector".
In this picture, inflation it should “go down in the coming months, to then pick up again towards the end of the year – continues the bulletin – Apart from the recent volatility, due to temporary factors, the measures of underlying inflation remain generally contained. Indicators of inflation expectations have shown a decline”.
In the medium term, however, "an increase in core inflation is expected, supported by monetary policy measures, the continuation of economic expansion and more vigorous wage growth", writes the European Central Bank.
The Governing Council of Frankfurt, in fact, reiterates that it is "ready to adjust all its tools, in such a manner as it deems appropriate, to ensure that inflation moves steadily towards the projected level”. In fact, the ECB continues to deem it necessary "a highly accommodative monetary policy stance for an extended period of time, as both actual and projected inflation rates have consistently been below levels in line with expectations.
The markets have long been waiting for a new one rate cut and the reissue Quantitative easing by the ECB. In the press conference following thelast board meeting – who gave the green light to the appointment of Christine Lagarde at the top of the Eurotower – the outgoing president, Mario Draghi, he explained that the central institute is evaluating the two interventions, but before adopting them it must evaluate the new economic projections.
