ECB Economic Bulletin Main Points - June 2020

At its monetary policy meeting on 4 June, the Governing Council decided to increase the envelope and extend the horizon for the pandemic emergency purchase programme (PEPP) and to reinvest its maturing principal payments, while continuing with the asset purchase programme (APP) and its reinvestments and keeping the key ECB interest rates unchanged.

Incoming information confirms that the euro area economy is experiencing an unprecedented contraction.
Severe job and income losses and exceptionally elevated uncertainty about the economic outlook have led to a significant fall in consumer spending and investment.
Survey data and real-time indicators for economic activity have shown some signs of a bottoming-out.
The June 2020 Eurosystem staff macroeconomic projections for the euro area see growth declining at an unprecedented pace in the second quarter of this year, before rebounding again in the second half.
While headline inflation is suppressed by lower energy prices, price pressures are expected to remain subdued on account of the sharp decline in real GDP and the associated significant increase in economic slack.