ECB says oil prices a drag on inflation but a boost to growth
[FRANKFURT] Falling oil prices will continue to support Europe's economic recovery but also exert a downward pressure on inflation, the European Central Bank said on Thursday, a potential headache for the bank as it tries to boost prices from anaemic levels.
The bank rolled out a 60 billion euro per month asset buying programme earlier this year, hoping to ward off the risk of deflation in the euro zone and to push inflation back towards its target of just under two per cent.
Price are only expected to rise towards the end of the year but the bank predicted a further pick up in 2016 and 2017, arguing that long term inflation expectations are in line with is target, despite the current low levels.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Vietnam tycoon appeals against US$27 billion fraud death sentence
US announces new restrictions on firearm exports
Central banks will probably only cut half as much as they hiked
US consumer sentiment falls as inflation expectations climb
HSBC wins £1.3 billion suit over Disney film finance scandal
WTO countries to reboot dispute reform negotiations