ECB may roll out heavy artillery against deflation in 2015

Frankfurt

AFTER a breathless year of action and now a new political crisis in Greece, the European Central Bank may finally roll out its heavy artillery in 2015 in its battle against deflation, analysts said.

Bank watchers say new elections due in January in debt-mired Greece may prove unsettling for European partners but should remain manageable for the eurozone as a whole. This will mean the ECB's overriding challenge in the new year will continue to be to prevent the single currency area from sliding into deflation, a dangerous downward spiral of falling prices.