ECB's de Cos: Stimulus package will boost inflation, growth

Comments by ECB governing council member, Pablo Hernandez de Cos

• Measures in the stimulus package are complementary
• Dip in services PMI shows rising risk of a global downturn
• It points to the global slowdown in Q2 likely to persist in the coming months
• Available data indicates euro area economic weakness persists in Q3
• There are risks of an imminent recession in some euro area countries
• Monetary policy cannot be the only instrument to revive the economy
• Calls for actions from countries with scope for fiscal stimulus

A bit of a more dovish take on the economic outlook by de Cos but the general message is the same as what we've been hearing from ECB members since last week i.e. we need fiscal policy help to combat the economic downturn.