ECB says oil prices a drag on inflation but a boost to growth
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[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
Share with us your feedback on BT's products and services
TRENDING NOW
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
Mustafa Centre begins fit-out at JB’s Capital City Mall after 2-year delay
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?
