When
the European
Central Bank unleashed
a stimulus barrage in June, it cautioned that the economy would take some time
to respond. Data due this week may test its patience. The inflation rate remained
at 0.5 percent for a third month in July, according
to estimation.
The unemployment rate remain unchanged at 11.6 percent in June, a separate survey shows. That may fuel policy makers’ concern that annual
price gains will become entrenched at a fraction of the ECB’s goal of just
under 2 percent, and increase calls for further action.
The ECB unveiled a range of measures
including a negative deposit rate and targeted long-term loans last month.
While the package has helped push the average yield on bonds from Europe’s
most-indebted nations to a record low and bolstered manufacturing and services
in a vote of confidence, it has yet to show its impact on prices, growth and
lending, as geopolitical tensions threaten to undermine the recovery.
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