ECB under pressure to act after Euro Zone GDP disappoints
Thursday 15 May 2014
The European Central Bank came under renewed pressure to ease monetary policy after the single currency bloc showed fresh signs of weakening growth.
The euro zone managed expansion of 0.2 per cent in the first three months of the year — just half the 0.4 per cent expected by economists.
Germany managed 0.8 per cent growth but even the region’s economic powerhouse could not make up for stagnation in France, a 1.4 per cent contraction in the Netherlands and a 0.1 per cent decline in Italy.
The poor growth comes as ECB president Mario Draghi also battles inflation well below the central bank’s 2 per cent target at 0.7 per cent.
Analysts said its main interest rate could be cut below 0.25 per cent, while banks could also be charged for holding deposits at the ECB.
ING bank’s Peter Vanden Houte said: “Today’s figure is a major disappointment, as it suggests the eurozone is still far away from ... the escape velocity required for a sustainable recovery. If anything, [it] should increase the pressure on the ECB to act next month.”
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...