ECB Press Conference Bullet Points
Written by A Forex View From Afar on Thursday, February 07, 2008Back to www.thelfb.com
- The decision reflects that price stability in medium term are to the upside
- Short-tern inflation must not spill over into the long-term
- Economic Fundamentals are sound, risk to growth are on the downside
- Moderate pace of Growth, inline with Business and Consumer Confidence
- Slow-down of Trading Partner Growth will impact GDP numbers, Exports may be affected
- Euro-Zone has maintained stability in labor Markets
- Consumption growth will increase in-line with labor growth
- Economic activity growth may be impacted by Financial Markets
- Additional Commodity price increases may impact growth
- Inflationary numbers were 3.2% in January 08
- The Growth Rate will continue at around 2%, with a slow-down later in the year
- Looking at Commodity price increases to moderate, and will not now affect Wage and Price growth
- High Capacity Utilization and strong labor Markets
- Second Round Inflation, due to excessive wage demands, must be contained
- Monetary Analysis remains vigorous at 11% per annum, temporary factors include a flattening of the Yield Curve
- Underlying Rate of Monetary expansion, Loans to the private sector and Business, remained very strong
- A cooling Housing Market has nor affected Loan amounts issued
- Little evidence that Financial Markets have not lead to a huge move to other Financial Instruments
- Strong Loan growth has not been impaired by the Credit-Crisis
- Upside Risks to price stability, but sound growth, the ongoing risk surround the unusually high volatility in Financial Markets has Growth forecasts lower in the near-term, but Inflation targets are still in place for the year
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