Today we received some comments from Philip R. Lane, Member of the Executive Board of the ECB in an interview conducted by Balazs Koranyi and Frank Siebelt, below is a summary of Lane's answers along with some key quotes.
Outlook For The Eurozone Economy
It’s important to differentiate between the first and the second halves of the year, the fact that the second quarter came in above what we expected and what the third and fourth quarters might look like -- I would say we’re broadly not too far away from what we expected in June for the full year. It’s a reasonably well-balanced picture.
How Is The Delta Variant Going To Affect The Economy?
It’s clearly a negative for the recovery in international travel and tourism. It’s a negative for the reopening of high contact domestic sectors as well. Because of high vaccination rates and prior lockdown measures, Europe may not be among the regions hardest hit by Delta.
The Federal Reserve Is Now Openly Debating Tapering. How Will Their Eventual Decision Affect The ECB?
The impact on the euro area is really a function of a few different dimensions. One is how much insulation might be provided by the exchange rate. If the exchange rate moves, counterbalancing monetary policy elsewhere, this insulates the euro area from some of those spillovers.
More Key Quotes From Lane
If Federal policy causes spillovers the ECB is willing to move.
Markets don't require long notice for the end of PEPP as QE will continue via APP.
I haven't seen a significant wage rate increase therefore I am not changing my thoughts that this year's inflation hike is just temporary.
We're committed to favourable financing terms at least through March.
Growth in 2021 will be generally in line with June predictions, with mounting headwinds offsetting stronger Q2 results.