Members were briefed on data received over the month, which suggested that the recovery in the United States had lost some momentum and activity in Europe had declined again in the June quarter. In contrast, developments had been more positive for the Chinese economy following some weaker data released the previous month. The election outcome in Greece and announcements regarding recapitalisation of Spanish banks provided some reprieve from mounting fears of a near-term escalation of the crisis in Europe. Nevertheless, members noted that the possibility that the situation in Europe could deteriorate again and spill ... (full story)