Europe look-ahead

Published: 17 June 2001 y., Sunday
An ECB meeting, Euro zone inflation figures and the latest survey on German business confidence get top billing in this week's look-ahead. The European Central Bank, which sets interest rates for the 12 nations that form the euro zone, has been criticized for being slow to lower interest rates. Its moved just one time this year by a quarter point. Stingy compared to the aggressive action by U.S. Federal Reserve and even the Bank of England, which has cut rates three times, to avoid a U.S.-led global economic slowdown.But inflation is well above the ECB's ceiling target of 2 percent. It hit 2.9 percent in April. And the May number is expected to be at least 3.3 percent The Frankfurt-based central bank warned on Thursday inflation could gather pace to reach 2.7 percent for the year. The December prediction had anticipated a minimum year-on-year inflation rate of 1.8 percent. The ECB is meeting this week. But the consensus is that it will not move on interest rates. Economic growth is forcast to grow between 2.2 and 2.8 percent in the euro zone for 2001, the ECB said. In December, the ECB had forecast growth could reach as high as 3.6 percent.
Šaltinis: cnnfn.cnn.com
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