BREAKING NEWS

Now Reading:

European Central Bank set to act on stimulus as eurozone inflation falls further


economy

European Central Bank set to act on stimulus as eurozone inflation falls further

The latest weak eurozone inflation figures have made it all but certain the European Central Bank will unveil fresh stimulus measures this week.

Annual consumer prices in the 18 countries using the euro rose by just 0.5 percent in May. The April figure was 0.7 percent.

ECB policymakers, who like to see annual inflation of around two percent, meet on Thursday.

Keen to avoid low inflation turning into deflation, they are widely expected to cut the cost of borrowing.

That could include lowering the interest rate for retail banks depositing funds with the central bank to below zero as a move to encourage them to lend more to small- and mid-sized firms (SMEs), as well as to individuals.

with Reuters

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article

economy

Think again warn creditors after Greeks mull easing austerity