ECB decrease forecast for Eurozone inflation

Noam Stiekema

ECB decrease forecast for Eurozone inflation, because of the new incentives as yet assess the impact of the sharp fall in oil prices on the Eurozone economy. The last time the ECB cut its main refinancing rate in September – to the historic minimum of only 0.05 per cent and the interest rate on deposits […]

ECB

ECBECB decrease forecast for Eurozone inflation, because of the new incentives as yet assess the impact of the sharp fall in oil prices on the Eurozone economy. The last time the ECB cut its main refinancing rate in September – to the historic minimum of only 0.05 per cent and the interest rate on deposits was reduced from minus 0.1% to minus 0.2%. The aim was to revive the region’s economy and to avoid the threat of deflation. But since then a series of not particularly positive data highlighted the weak state of the monetary union, whose growth remains sluggish and inflation is almost zero amid lower oil prices.

Today’s meeting of the 24 members of the Management Board of the Bank will be the first consideration in the new headquarters of the ECB, housed in a 45-story skyscraper in Frankfurt. After September the bank cut its forecast for growth and inflation, analysts expect that the fall in oil prices, President Mario Draghi will present a new, lower estimates of inflation at the press conference after
meeting.

Prospects for low inflation, in turn, will prompt the ECB to announce a new range of measures to stimulate growth in the beginning of next year, including a mechanism for the purchase of government bonds. This step would be addition to the already announced programs to purchase assets from the private sector.

The problem for the ECB in assessing the impact of the fall in oil prices on the euro area economy, the decline of quotations is a double-edged sword. On the one hand, lower prices of black gold help the economy to reduce the cost of energy, but on the other they increase the risk of deflation and lower revenues of oil-producing countries, which are also export markets for goods produced in the Eurozone.

Read this next

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)

Opinion

Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.

Institutional FX

Finalto launches Prime of Prime offering on LSEG’s FX Matching venue

“By combining our expertise in Prime of Prime services with LSEG’s robust trading platform, we aim to empower clients with the tools and resources needed to navigate the FX market with confidence.”

Digital Assets

Tether’s USDT stablecoin nears 100 billion in circulating supply

USDT, the world’s largest stablecoin, has reached close to 100 billion in circulating supply, currently sitting at around 99.5 billion. Its market capitalization, which reached over $100 billion at one point, is calculated by multiplying the supply by the price.

Market News

5 Hot Stocks For March 2024

Entering March 2024 marks the beginning of the final stretch of the first quarter of the year, seemingly passing swiftly amidst market anticipation and global economic factors.

<