The European Central Bank raised its prospects for growth and inflation, but promised to maintain the stimulus, for fears that any retreat now would slow down the economic recovery.
Christine Lagarde, the ECB president, said authorities had agreed to make new emergency purchases during the next quarter “at a significantly higher pace” than during the first few months of the year.
“We will do this over the next three months depending on market conditions, which clearly include seasonality,” stated Lagarde.
The ECB's key economic forecasts for the eurozone economy were also expected to rise as vaccination campaigns accelerate and the prospects for the huge services sector to come back to life again as pandemic containment measures taper off.
The economy growth forecast rose to 4.6% this year and 4.7% next. The inflation forecast rose to 1.9% this year and 1.5% next.
Although they seem to be for a good cause, constant government stimulus aimed at economic recovery continues to increase inflation levels in several parts of the world. Not enough, the markets are getting used and creating a dependency on these economic stimulus actions, which dilute the value of savers.