The European Central Bank has nudged up its expectations for growth and inflation in the euro area this year, but kept its main interest rate unchanged in negative territory. David Pollard reports.
Gemini aside Europe's conveyor belt has been made rather slowly of late factory output in France for example shrinking for three months in a road. If that's one argument for further monetary easing the ECB's other nemesis than inflation might be another. Inflation rates. Are likely to remain very low or negative. In the next few months. But it's not reason enough just now it seems full for the stimulus. Rates left on hold this meeting and QB kept current levels the ECB inflation outlook this year in fact revised up. Great to. They're only just and that could be more smoke than real heat according to some economists. My drug his favorite measure of inflation fighting for what's Walt. It is stagnant. Is going no way not certainly not back towards 2% target that the ACP hats. But a strike he was also at pains to repeat the well worn mantra the governing council if warranted to achieve its objective. Will act by using all the instruments available we'd be in its mandate. It's got to do raises a skeptical eyebrow as to whether he can actually deliver. Just policy in the corporate old putt structure starting. We've seen some elements of negative interest rates and the problem is is there a guarantee those good luck Y causes one key would missing is confidence. Gap could be filled by gently rising fuel prices they used to get the with a low Euro helping notch years and inflation in the right direction. In the crisis doing some of track he's worked for him.