Commenting on today’s ECB Governing Council decision, Barret Kupelian, senior economist at PwC, said:
"As expected, the Governing Council of the European Central Bank (ECB) voted to leave interest rates unchanged, which was unsurprising given the current Eurozone, global economic outlook and previous communication."
"At the same time, the ECB refined its forward guidance to state that its rates will remain at present levels at least through the first half of 2020. This, coupled with its longer-term refinancing operations (TLTRO III) are expected to keep monetary conditions accommodative for the near future."
"The ECB also publicised its latest set of projections for the Eurozone—these were not materially different than the last set released in March of this year. Specifically, the ECB staff now expect the Eurozone economy to grow marginally faster this year on the back of stronger data earlier in the year. However, this effect offsets downward revisions in the following quarters, mainly driven by trade tensions, which is expected to lead to a weaker than initially expected growth picture in 2020."
"But on a brighter note, ECB staff now expect the number of jobs in the monetary union to hit the 162 million mark by the end of 2022—its highest recorded level on record. This means that the 19 countries which make up the block will have created about 13 million jobs since 2013 or, put differently, more than one million jobs per year."
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