The ECB monthly report for October confirmed last month’s assessment as the euro-zone looks to recover from the deepest recession since World War II. The central bank expects Inflation to turn positive in the 3Q, rising.1% versus the 2Q as Governing Council member Ivan Sramko said “the development of industrial production and consumer confidence suggests a stabilization of the economy.” However, in spite of the forecast in growth, the Governing Council’s emphasized that inflation consensus is in line with their aim of keeping inflation rates below or close to 2% in the medium term. Despite the positive news for the Euro-Zone, the bank reiterated that uncertainty remains high. In particular, weak developments in loans to non-financial corporations in the near term remain likely as the flow of bank loans were subdued in August. Moreover, concerns for the negative feedback loop between the real economy and the financial sector also linger. Going forward, expect the central bank to keep rates at their record low of 1.00% until inflation becomes a threat. Until that time arises, the ECB will continue preparing a fiscal policy exit. To discuss the topic and your trade ideas visit the EUR/USD Forum.