Economics
EU Cuts Growth and Inflation Forecasts for Next Year
- European Commission cuts inflation forecast for 2019 and 2020
- ECB has pledged to provide more monetary stimulus if needed
This article is for subscribers only.
The European Commission cut its euro-area growth and inflation forecast for next year as trade tensions and policy uncertainty weigh on the region, strengthening Mario Draghi’s case for further stimulus measures.
The latest warning comes just two weeks before the European Central Bank’s next policy meeting, where it may lower interest rates or signal that action is imminent. The fallout from slower global demand was already laid bare this week when German chemicals giant BASF SE shocked investors with a huge downgrade to its profit outlook.