ECB Bulletin: Prices have eased in the Euro Area, uncertainty remains high

Thu, Oct 9 2008, 09:18 GMT
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FXstreet.com (Barcelona) – The European Central Bank has published its monthly report today after the coordinate action with other main Central Banks to cut interest rates in order to give some air to companies and families to avoid the worst consequences of the financial turmoil.

The extraordinarily high level of uncertainty makes it difficult to draw forecasts over the real economic outlook, although latest signs point out to a considerable slowdown in economic activity, the declining prices of oil could bring back some strength, even though the Bank admits that the intensity of the financial crisis is being higher than they previously estimated.

Price inflation has eased in the Euro area and they will return to levels around the 2.0% year on year in the medium term, for the last quarter of this year, the Bank expects yearly inflation to decline to the 3.0% from the current 3.6%.

EUR/USD

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