ECB Economic Bulletin: The risks to economic growth are balanced in the near term

Dhwani Mehta FXStreet

“The risks to economic growth are balanced in the near term,” the European Central Bank (ECB) said in its Economic Bulletin published on Thursday.

Additional takeaways

The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner.

It will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim.

After five quarters of stagnation, the euro area economy grew by 0.3% over the first quarter of 2024.

Most measures of underlying inflation declined further in April, the last month for which data were available, confirming the picture of gradually diminishing price pressures.

However, domestic inflation remains high.

The risks to economic growth are balanced in the near term but remain tilted to the downside over the medium term.

Credit dynamics remain weak.

Market reaction

The Euro remains unfazed by the ECB Bulletin, with EUR/USD losing ground below 1.0750, down 0.21% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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