Negative Inflation May Prompt ECB Stimulus Boost
World Economy

Negative Inflation May Prompt ECB Stimulus Boost

The European Central Bank is set to review its accommodative monetary policy in December. While the EU economic recovery is progressing moderately, the return of inflation is likely to take longer.
EU economic recovery is expected to gradually strengthen the impulse underlying the inflation process, ECB chief Mario Draghi said, NewsNow reported.
But the protracted economic weakness of the past years continues to weigh on nominal wage growth, and this could moderate price pressures.
After leaving interest rates unchanged last month, the ECB Governing Council discussed all possible policy tools, including interest rate cuts. Draghi strongly hinted that the ECB may boost its stimulus in December as policymakers are increasingly concerned over the persistence of negative inflation.
The ECB seems to be ready to deploy all its tools to maintain an appropriate degree of monetary accommodation.
In its latest World Economic Outlook, the IMF cut its growth projections for Germany, but retained the outlook for France. It forecasted Germany to grow 1.5% this year and France to expand 1.2%.
Britain’s unemployment rate fell to the lowest level since early 2008 and employment rose to a record in the Q3.The ILO jobless rate dropped to 5.3% in the September quarter from 5.6% in the previous three months. There were 1.75 million unemployed Britons in the third quarter, down by 103,000 from the June quarter.
The number of people in work surged by 177,000 to 31.21 million. Earnings including bonuses increased by a less-than-expected 3%, and that excluding bonuses grew 2.5%.
A marked rise in employment and fall in the unemployment rate points to a further tightening of the labor market, which is supportive to interest rates rising sooner or later.


Short URL : http://goo.gl/VDQJ2O
  1. http://goo.gl/q3na4I
  • http://goo.gl/YEjskN
  • http://goo.gl/8pCfPf
  • http://goo.gl/coUXyN
  • http://goo.gl/hMCYVR

You can also read ...

Qatar Capable of Overcoming Siege Challenges
Qatar affirmed its ability to overcome the challenges of the...
Apple Inc won guarantees from the Trump administration that its lucrative iPhones would ship from China  without being subject to tariffs.
Big companies in the United States from Amazon.com Inc to...
Japan Inflation Inches Higher
Japan’s inflation picked up slightly in June, largely because...
Today, income inequality in the US is greatest among Asians. Asians displaced blacks as the most economically divided racial or ethnic group in the US.
The rich are getting richer and the poor are getting poorer in...
Growing Inflation Looms Large Over India’s Economy
From rising crude oil prices to a poor start to rice-planting...
State-Actors Likely Behind Singapore Cyberattack
State-actors were likely behind Singapore’s biggest ever...
S&P Affirms Russia’s Stable Outlook
Standard & Poor’s said in a statement on Friday that it...
Argentina Making Fiscal Progress
Argentina is “unequivocally” making progress on its goals to...