THE TAKEAWAY -> ECB warns of EU growth issues -> inflation not expected to be a concern -> Euro remains constant as this information was not unexpected…
The European Central Bank in its monthly report for November released today predicted that the Eurozone economy will experience decreased economic growth in 2012 through 2014. GDP forecasts for the next three years were cut to 1.6/0.8/1.6% from 1.9/1.6/1.8% for 2011-13.
While growth is expected to diminish, inflation is not expected to be a concern with the ECB cutting its forecast for the next two years to 1.8% from the previous prediction of 2.0% and 1.9%, respectively.
The market remained relatively unmoved following the release, with the Euro attempting to regain some of its losses from earlier in the day.