The European Central Bank’s forecasts this week are likely to justify the current stimulus program with a cautious view that envisages no sustained jump in inflation, according to officials with knowledge of the matter. The outlook that will be presented to policy makers assumes that hoarded savings won’t be depleted in a sudden consumption boom when lockdown restrictions ease, said the officials, who asked not to be identified discussing confidential matters. Chief Economist Philip Lane will present projections compiled by ECB staff to the Governing Council before President Christine Lagarde then unveils them at … (full story)
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