UOB Group’s Economist Lee Sue Ann comments on the upcoming ECB meeting.
Key Quotes
“The revised forward guidance from the July meeting shows the ECB can tolerate above-target inflation that is transitory.”
“As such, the ECB will accept any temporary overshoots of its new symmetric 2% inflation target, particularly when monetary policy is at the effective lower bound and strong policy action is needed to ward off below-target inflation expectations – as is currently the case.”