Nhóm 1 lớp 47 The last time the European Central Bank cut interest rates, it took investors by surprise. It will be a shock if the central bank doesnt cut them further Thursday. Expectations of new action to boost the economy have increased sharply over the past month as evidence mounts that Europes recovery is stuck in first gear. Growth this year has been disappointingly weak, and France and Italy in particular are hurting. Last month, consumer prices in the eurozone rose just 0.5%, reinforcing fears of stagnation. Very low inflation can be as damaging to an economy as excessive price increases. If households and businesses expect inflation to stay depressed for a long period, they may postpone spending and investment, triggering a downward spiral and raising the risk of outright deflation. It also makes it harder for countries to pay off debts, and forces weak European economies to make real cuts to wages to compete with countries like Germany. money.cnn/2014/06/04/news/economy/ecb-interest-rates/ Deflation risk: What will the European Central Bank do? money.cnn
Posted on: Tue, 12 Aug 2014 05:59:46 +0000
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