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9/1/2021, 7:32 AM (Source: TeleTrader)
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New events in economy to dictate ECB's fiscal policy - de Guindos

European Central Bank (ECB) Vice President Luis de Guindos stated on Wednesday that any future decisions the institution makes on the matter of its fiscal policy will depend on how the economy and particularly inflation change amid the still ongoing COVID-19 pandemic.

De Guindos told El Confidencial the bank will meet in September to decide on the purchases it will make in the last quarter of the year under its Pandemic Emergency Purchase Programme (PEPP). He also estimated inflation will continue to grow in 2021 but then "fall back in 2022." "If inflation and economy recovers, logically, there will be a gradual normalization of monetary and fiscal policy," he added.

De Guindos recently predicted the inflation in the Eurozone will peak at 3% in November. Meanwhile, he said the ECB could revise its macroeconomic projections in the near future.

Baha Breaking News (BBN) / JR