The euro area economy rebounded in the second quarter of 2021 as the easing of restrictions poised the economy for strong growth in the third quarter.
- The reopening of large parts of the economy is supporting solid bounce-back in the services sectors, but the Delta variant could hurt the recovery efforts, especially in tourism and hospitality.
- The Euro area inflation increased to 1.9% in June, largely driven by higher energy prices and base effects from the sharp decline in oil prices.
- Money creation continued to rebound to the pre-Covid level standing at 8.4%, reflecting a moderation of monetary and credit flows amidst an improving situation.
- In a recent strategy review, the European Central Bank agreed on a symmetric inflation target of 2% over the medium term.
The Governing Council revised its forward guidance on interest rates underlining the commitment to maintain a persistently accommodative monetary policy stance to meet the inflation target.
EUR USD up 0.01%
Source: European Central Bank
