Europe is approaching the moment that will show the effectiveness of all the measures that were implemented to support the European economy. The ECB said that September would be a key month to read the economy.
The regulator supposes that in September businesses and ordinary people may find themselves at a crossroads. At the moment, policymakers are expressing uncertainty about the real economic condition and its outlook due to a lack of data. However, in September, a bulk of important macroeconomic reports will allow them to make more accurate forecasts.
Using the data, the regulator will decide on the extent to which it should deploy monetary stimulus. Moreover, now, the ECB finds it almost impossible to evaluate the real effect of all aid packages.
At the moment, the ECB is planning to extend the QE program by 1.3 trillion euros. However, some officials think that the regulator might not need to spend the full sum. These policymakers argue that “the net purchase envelope should be considered a ceiling rather than a target.”
Moreover, disputes have arisen over the reports that showed economic growth. The fact is that economists cannot decide whether to rely on these figures or consider them just as preliminary estimates. During the last weeks, positive figures are regularly replaced with negative ones.
