ECB expected to cut inflation forecast, hint at more easing

ECB expected to cut inflation forecast, hint at more easing
[You must be registered and logged in to see this image.]EconomySep 03, 2015 06:17AM (GMT-4:00)
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[You must be registered and logged in to see this image.]© Reuters. ECB expected to downgrade inflation forecast, hint at more QE

Investing.com - The European Central Bank was expected to downgrade its inflation forecast at its monetary policy meeting later Thursday and could also hint at the possibility of further monetary stimulus with inflation in the euro area still sluggish.
The bank was expected to keep interest rates unchanged, but economists believe the ECB could cut its inflation forecast due to ongoing falls in oil prices and slowing growth in China.
The annual rate of inflation in the single currency bloc rose 0.2% in August, unchanged from the previous month, but slightly higher than forecasts of 0.1%.
The ECB targets inflation of close to, but just below 2%.
Late last month, the ECB’s chief economist Peter Praet warned that risks to its medium-term inflation target have increased and indicated that the bank is prepared to expand its economic stimulus program if necessary.
The ECB launched its €60 billion per month quantitative easing program in March after the euro area briefly slid into deflation.