ECB Faces Communication Challenge Over Easing QE

A forecast dip in inflation makes it harder for the ECB to explain why it's reducing stimulus

The European Central Bank is set to face a communication challenge if it opts to scale back bond purchases next year. Its forecast for a dip in annual inflation will make it hard for the central bank to point to price growth approaching its target as justification for cutting back on support for the economy. Strong increases in energy and unprocessed-food prices in early 2017 will drop out of the year-on-year comparison in the first quarter of 2018.

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