This content is not available in your region

ECB trims Eurozone growth and inflation forecasts

Access to the comments Comments
By Euronews
ECB trims Eurozone growth and inflation forecasts

<p>The European Central bank has cut its growth and inflation forecasts for the eurozone at its latest policy meeting. The news sent the euro to a two-week low.</p> <p>The bank left exchange rates unchanged, and said if the climate darkened further it would consider increasing its money-printing programme now and stimulate the eurozone economy beyond September 2016.</p> <p>“Economic growth in the euro area is likely to continue to be dampened by the necessary balance sheet adjustments in a number of sectors, and the asset purchase programme continues to process smoothly. These purchases have a favourable impact on the cost and availability of credit for firms and households,” said <span class="caps">ECB</span> boss Mario Draghi.</p> <p>Things could get worse warns the bank, and more bond-buying could also take place to shore up the economy if China slows and prices continue to fall.</p> <p>The growth downgrade suggests Europe won’t hit 2% growth until 2018, with a strong euro another factor hampering progress.</p> <p>On Thursday the <span class="caps">IMF</span> lent its voice to supporting greater quantitative easing, saying greater global downside risks and increasing volatility justified the measure.</p>