Lane gives three reasons "it will be............>

ECB: Lane gives three reasons "it will be unusually difficult for several

reasons to extract signals about the medium-term prospects for the economy and

the inflation path":

- "The scale of the contraction has been so large that overall activity will

remain far below the pre-crisis level and the scale of the initial rebound in

these weeks will not necessarily be a good guide to the speed and robustness of

the recovery."

- "It is plausible that it will take a sustained period of improving economic

and public health conditions before the confidence channel that is so important

in determining the expenditure plans of households and firms is fully

operative."

- "Projections about the speed of the recovery also depend on the design and

timing of fiscal stimulus programmes. In particular, the outcome of negotiations

about the EU recovery fund will be an important factor in determining the future

path for the euro area economy."