FRANKFURT, Germany, Aug. 4 2016.- The global economic outlook has become more uncertain following the decision of the UK to leave the European Union, according to the European Central Bank, reaffirming its readiness to act, if necessary, to support inflation in the euro zone.
after a rise in volatility after the referendum of June 23, the financial markets have again been relatively calm, but economists have warned that probably has not yet been materialized the total effect the “Brexit”.
“the financial market volatility after the referendum in Britain on membership to the EU has been short,” said the ECB in its regular economic bulletin.
“However, uncertainty about the global outlook has it increased, while new data for the second quarter point to an activity and global trade content,” he added.
Polls suggest the economy of Britain is shrinking at its fastest pace since the financial crisis of 2008-09 and the Bank of England cut its benchmark interest rate of 0.50 percent to a record low of 0.25 percent on Thursday.
So far, the economy of the euro zone has been greatly affected by the “Brexit” and the ECB on Thursday reaffirmed their expectation of a “moderate” recovery. That view is shared by the head of Germany’s central bank, Jens Weidmann, one of the members of more hawkish ECB.
“My impression is that the economic outlook for the currency area has not fundamentally changed by a vote of ‘Brexit’ “Weidmann told the German weekly Die Zeit and the Italian daily Corriere della Sera in interviews published on Thursday.
investors have been betting that the ECB will soon extend its program money printing 80,000 million euros per month beyond its current end date of March 2017 and will change the terms of the scheme to avoid touching limits on purchases of sovereign debt.
TFO
No comments:
Post a Comment