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ECB Faces Greater Pressure to Act as Inflation Forecasts Cut
by Eric Reguly
The Globe and Mail
Lower inflation forecasts from the European Commission will put more pressure on the European Central Bank to launch measures to prevent falling prices from destabilizing the weak economic revival.
The EC, the executive arm of the 28-country European Union, predicted on Monday morning that euro zone’s inflation rate will land at 0.8 per cent this year and 1.2 per cent next year. Both figures are well below the ECB’s target rate of close to 2 per cent Less than three months ago, the EC had forecast inflation this year at 1 per cent, and at 1.5 per cent next year. The downward revisions came as more evidence emerged that the euro zone’s deflationary pressures are still fully intact, in spite of rock-bottom interest rates, the end of the euro zone’s recession and slightly lower jobless figures.
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Source: http://financialsurvivalnetwork.com/2014/05/ecb-faces-greater-pressure-to-act-as-inflation-forecasts-cut/?utm_source=rss&utm_medium=rss&utm_campaign=ecb-faces-greater-pressure-to-act-as-inflation-forecasts-cut
