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12 Sep 2013
ECB Monthly Report: Recovery in the Eurozone is progressing as expected
FXstreet.com (Barcelona) - In the September ECB Monthly Report the Governing Council pointed to the progressing recovery in the Eurozone, with the second consecutive quarter of positive growth and a significant improvement in confidence indicators seen in the recent months.
The Council once again affirmed its readiness to continue with the accomodative monetary policy, in order to support the recovery, with key interest rates to be maintained “at present or lower levels for an extended period of time.” Economic activity, already gradually improving, is projected to be boosted further by the strengthening of external demand for exports
As far as inflation expectations are concerned, they are to remain “firmly anchored in line with the aim of maintaining inflation rates below, but close to, 2% over the medium term.”
The ECB has also raised its annual real GDP forecast to -0.4% in 2013 and revised the prevision for 2014 slightly downwards to +1%.
Finally, the report stressed the importance of the implementation of structural reforms by the EU Member States in order to stimulate competitiveness and employment and reduce deficits.
The Council once again affirmed its readiness to continue with the accomodative monetary policy, in order to support the recovery, with key interest rates to be maintained “at present or lower levels for an extended period of time.” Economic activity, already gradually improving, is projected to be boosted further by the strengthening of external demand for exports
As far as inflation expectations are concerned, they are to remain “firmly anchored in line with the aim of maintaining inflation rates below, but close to, 2% over the medium term.”
The ECB has also raised its annual real GDP forecast to -0.4% in 2013 and revised the prevision for 2014 slightly downwards to +1%.
Finally, the report stressed the importance of the implementation of structural reforms by the EU Member States in order to stimulate competitiveness and employment and reduce deficits.