ECB Bulletin warns Euro zone unemployment will continue to rise

Unemployment will continue to rise in the euro zone and there is little upside in demand for consumer goods even as the economy recovers from an unprecedented recession, the European Central Bank said in an economic bulletin on Thursday.

Unemployment will rise as the current rate does not fully capture the impact of the coronavirus pandemic and the figures are skewed by job subsidy schemes, the ECB said in a bulleting, that largely reflects the ECB’s Sept 10 economic projections and policy decisions.

“Looking forward, there is little sign of buoyancy in the demand for consumer goods,” the ECB said. “While the drop in household incomes has been limited, the saving rate is expected to have risen sharply.”

The bank also repeated its long standing guidance that it stands ready to adjust all of its instruments as needed to boost inflation