ECB Eco Bulletin: Underlying inflation pressures remain subdued

Dhwani Mehta FXStreet

The European Central Bank (ECB) published its monthly economic bulletin on Thursday, underscoring concerns over inflationary pressures in the Euro area.

Key Headlines:

December measures succeeded in preserving very favorable financing conditions

Downside risks to outlook for global activity remain

Cites political uncertainty & financial imbalances

Global financial conditions have tightened

Euro area economic expansion is proceeding and strengthening, expected to firm further

Sluggish pace reforms, balance sheet adjustments dampening euro area econ. Growth

Underlying inflation pressures remain subdued

No signs yet of a convincing upward trend in underlying inflation

ECB GC will continue to look through changes in HICP infl. If judged to be transient & have no implication for m-term outlook for price stability

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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