KOF Monetary Policy Communicator for the Euro Area, July 2020
The KOF MPC figure for 16 July 2020 is -0.38. At today’s meeting, the ECB has reconfirmed its very accommodative monetary policy stance to safeguard medium-term price stability.
At today’s meeting, the Governing Council decided to keep the key ECB interest rates unchanged.
According to Eurostat’s flash estimate, Euro area annual HICP inflation was 0.3% in June 2020, up from 0.1% in May. This development mainly reflected less negative energy price inflation. Headline inflation is still dampened by low energy prices and is expected to decrease in the coming months before picking up in early 2021. Underlying inflation is expected to remain very subdued because of a significant increase in economic slack. The medium-term inflation outlook is also subdued, as downward pressures on prices stemming from weaker demand will only partially be offset by upward pressures related to supply disruptions.