ECB's de Guindos: July data was very strong, though August activity was less robust
Comments by ECB vice president, Luis de Guindos
- Expects inflation to continue falling this year
- But sees "some kind of rebound" next year
I reckon some element of fears surrounding a second wave across Europe is playing a part to limit the recovery in August, and that will certainly undermine the pace of the recovery going into the latter stages of Q3 and potentially in Q4 if this keeps up.
But for the ECB, they are still well positioned to maintain their current wait-and-see approach so there is little change in terms of policy expectations for now.