POWER: Axpo Extends Beznau 1 Halt Until Friday 13:00 CET

Q from David Robinson at MNI: Is your central case now that you have a relatively high level of uncertainty, that continues to weigh on economic activity?

A: We still have an elevated uncertainty which is dampening economic activity.

• On that scale, we are at a lower level than in June.
• There is an element of adapting to uncertainty in companies. In the end they need to invest, so they might do so now even if uncertainty is higher than e.g 2 years ago.
• There are still arguments for slightly increased investment and consumption behaviour going forward.
• But we are uncertain about the uncertainty.
• 15% tariffs is a higher level, but now we know it. That makes it easier to make decisions.  

Q: Do you need inflation to fall back for another rate cut to be delivered.
A: We are not “inflation nutters”. We have a forward-looking view on monetary policy. We don’t need inflation to exactly match the forecasts made in June. The medium-term outlook is more important

• We think it [the inflation rise] is a summer effect, but we cannot be completely sure on that.
• Most of the inflation uptick will likely filter out in the coming months, some will still remain in the August inflation figures.