BRUSSELS (dpa-AFX) - Financial market volatility after the Britons voted to leave the EU has been short-lived, the European Central Bank said Thursday.
However, uncertainty about the global outlook has increased, while incoming data for the second quarter point to subdued global activity and trade, the bank said in its economic bulletin.
The economic recovery in the euro area is forecast to proceed at a moderate pace. Moreover, the fiscal stance is expected to be mildly expansionary in 2016 and to turn broadly neutral in 2017 and 2018.
The ECB said the bank will be in a better position to reassess the underlying macroeconomic conditions, over the coming months as more information becomes available, including new staff projections.
At the July meeting, the ECB had left its key interest rates unchanged for a third straight session.
'If warranted to achieve its objective, the Governing Council will act by using all the instruments available within its mandate,' the bank reiterated.
Copyright RTT News/dpa-AFX
© 2016 AFX News
