ECB Says Downside Risk To Economic Outlook Remains

The risks surrounding the economic outlook for the euro area continue to be on the downside, the European Central Bank said in its monthly bulletin published on Thursday.

Downside risks relate to a renewed increase in the tensions in several euro area financial markets and their potential spillover to the euro area real economy. Another risk is increase in energy prices over the medium term.

The bank noted that some of the previously identified downside risks to the euro area growth outlook have materialized. At the same time, inflationary pressure over the policy-relevant horizon has been dampened further.

At its meeting on July 5, the bank lowered its main refi rate by 25 basis points to 0.75 percent.