• Sees growth continuing moderately this year and next
  • Uneven and uncertain growth, though
  • May see slight inflation increase in second half of 2010
  • Inflation to remain subdued in medium-term
  • Monetary policy stance is appropriate
  • ‘Quantum leap’ needed in fiscal policy surveillance
  • European Commission should have more responsibility in fiscal surveillance
  • Sanctions earlier, broader in scope, surveillance deeper

Three themes are apparent

  1. Moderate growth continued in the first half of the year and is expected to continue into next year
  2. Monetary policy is appropriate
  3. Surveillance of fiscal policy needs to be much more aggressive

EUR/USD is drifting in ranges just below 1.2400.