- 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
- Moderate growth continued in the first half of the year and is expected to continue into next year
- Monetary policy is appropriate
- Surveillance of fiscal policy needs to be much more aggressive
EUR/USD is drifting in ranges just below 1.2400.