ECB Expect EU Recovery Next Year

[DailyFx]

ECB's Papademos expects EU recovery from Q4 onwards. Papademos said the ECB expects a "sluggish rate of growth in the third quarter", but added that "it is likely that the recovery will start at a faster pace in the fourth quarter". The vice president said the eurozone will experience a "gradual recovery" next year. Papademos also warned that "we may witness another rise in the price of oil and commodities, whcih may have adverse implications for price developments. He also added that the bank has "no bias" and is monitoring the situation very carefully. The comments confirm that the central bank is still far away from cutting rates, with the central scenario still that growth will recover gradually and that inflation risks remain.