ECB Says Risks to Economic Outlook Have Shifted to Downside
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The European Central Bank said threats to euro-area growth have intensified and inflation risks have eased, signaling policy makers may take further action should Europe’s debt crisis worsen.
The 17-member euro-area economy faces “particularly high uncertainty and intensified downside risks,” the Frankfurt-based ECB said in its monthly bulletin today, echoing President Jean-Claude Trichet’s Sept. 8 policy statement. Risks to the inflation outlook are broadly balanced and no longer tilted to the upside, the ECB said.