The Traderszone Network

Published in TZ Latest News 3 September, 2015 by The TZ Newswire Staff

ECB to cut inflation forecast but keep powder dry

The European Central Bank is set to cut its inflation forecasts on Thursday but hold back from concrete policy action, promising only to beef up its bond-buying program if prospects weaken further. The bank is expected to leave interest rates unchanged and argue that the chance of missing its medium-term inflation target has increased due to lower oil prices and weaker growth in China. The ECB launched the 60 billion euro ($67.7 billion) per month quantitative easing program in March to boost consumer prices after a short bout of deflation.