EU economists call for easing monetary policy
18:48
Central banks should conduct rather expansionary monetary policy in the second half of the year, European economists from AIECE say. They also allow for a policy mix in which both the central bank and the government stimulate the economy. The vast majority of economists expect a soft policy from the European Central Bank (ECB). More than 85 percent of economists surveyed indicated that the ECB will pursue a growth-supportive policy until the end of 2022.
Strong tightening is expected by only 5 percent of respondents.
The economists' assessments are accompanied by concerns about whether monetary policy will effectively protect the economy from a slowdown. Among economists recommending raising interest rates, as many as 88 percent recommend only modest increases.
The Association d'Instituts Européens de Conjoncture Economique (AIECE) brings together economic institutes from EU countries. The Polish Economic Institute represents our country in this association.
As part of the organization's work a cyclical, semi-annual report is prepared. It presents a consensus on the right direction for economic policy in the European economy over the next two years.
