Central Banks

Euro Zone’s Lackluster Growth to Keep ECB on Rate-Cut Path

  • Analysts reckon GDP probably grew just 0.1% in fourth quarter
  • ECB poised to reduce deposit rate to 2.75% from 3% on Thursday
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The euro-area economy’s sub-par performance is convincing the European Central Bank that it can further loosen the shackles on growth by lowering interest rates for a fourth straight meeting this week.

Data due Thursday, hours before policymakers in Frankfurt announce their decision on borrowing costs, will probably show gross domestic product rose by just 0.1% in the fourth quarter, down from 0.4% in the third, according to a Bloomberg poll.