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Investors Might Be Underpricing Draghi’s Desire for a July Move

  • Economy hasn’t improved since president said stimulus likely
  • Board members Lane and Coeure have signaled need to act fast
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EU Cuts Euro-Zone Economic Outlook
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Investors betting the European Central Bank will wait until September before ramping up monetary stimulus may be underestimating the risk of earlier action.

The latest reports suggest the economy is still limping, giving President Mario Draghi reasons to follow through on last month’s pledge that the ECB will act if the outlook doesn’t improve. The European Commission cut its outlook for euro-area GDP and inflation on Wednesday, and a survey of investors this week suggested a German recession is likely as factory orders plunge.