ECB Inflation Goal, $9 Trillion Binge, Polish Rates: Eco Day

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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • ECB policy makers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed, according to officials familiar with the matter
  • Federal Reserve officials were not ready to communicate a timeline for scaling back asset purchases due to high uncertainty on the economic outlook, a record of their June gathering showed
  • Since the start of the pandemic, central banks in the U.S., Europe and Japan have been on a $9 trillion spending spree
  • British companies are raising wages more rapidly to overcome difficulties in attracting staff, adding to upward pressures on inflation as pandemic restrictions ease
  • Poland is poised to extend more than a year of near-zero interest rates, though a hike may be coming into view in the coming months
  • China’s State Council signaled the central bank could make more liquidity available to banks in order to boost lending to businesses, including by cutting the amount of money they have to keep in reserve
  • With the global recovery gathering steam, Bloomberg Economics projects GDP will expand 6.9% in 2021 before slowing to 4.9% in 2022
  • The EU’s executive arm is likely to withhold approval of Hungary’s economic stimulus plan past a deadline due to concerns that the proposal doesn’t go far enough in preventing corruption
  • Thirty years ago, India liberalized its Soviet-style economy in a transformation that eventually pulled about 300 million out of poverty. Then came the world’s fastest coronavirus surge

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