Market news
04.06.2020, 12:40

ECB's president Lagarde: ECB ready to adjust all instruments as needed

  • Economy has showed signs of bottoming out
  • Q2 contraction will be unprecedented
  • Prices to continue to be depressed by economy
  • ECB determined to ensure needed degree of stimulus
  • ECB will do everything possible within its mandate
  • Some bottoming out of economy seen in May
  • Economy expected to rebound in Q3
  • Recovery speed and scale remain highly uncertain
  • Level of economic activity and inflation outlook is downgraded due to uncertainty
  • ECB sees 2020 GDP growth at -8.7% in baseline scenario vs +0.8% seen in March
  • ECB sees 2021 GDP growth at 5.2 % vs. 1.3% seen in March
  • ECB sees 2022 GDP growth at 3.3% vs. 1.4% seen in March
  • Based on futures, inflation is expected to decline somewhat in coming months
  • Over medium-term, weaker demand will put downward pressure on inflation
  • ECB sees 2020 inflation at 0.3% vs 1.1% seen in March
  • ECB sees 2021 inflation at 0.8% vs 1.4% seen in March
  • ECB sees 2022 inflation at 1.3% vs 1.6% seen in March

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