The European Commission downgraded its GDP growth forecasts for 2009 and 2010 and now sees the eurozone economy contracting 1.9% this year and expanded 0.4% next year, compared with estimated 0.9% growth last year. The EC's forecast is more pessimistic than the forecast of the European Central Bank which most recently estimated an economic contraction up to 1% this year. The EC also sees 2009 annual inflation around 1.0% and that could grow to 1.8% in 2010.
European Central Bank President Trichet reported yesterday that "2009 will be very difficult, as I indicated last Thursday. The council of governors considers that world and European growth in 2009 will be substantially lower than the forecasts made at the beginning of December." He added "The difficulties are still there, there is not in any circumstance any room for any complacency whatsoever. We must remain permanently ready to act."
The ECB cut rates by 50bps last Thursday and ECB forecasts are expected to be updated in March. ECB member Provopoulos today said the "scope for further rate cuts will be limited." ECB member Nowotny added "The ECB has no interest in interest rates going down to zero." Euro bids are cited around the US$ 1.3055 level.
All the posting are delayed, I can share live updates of my content via emails. If you are interested to receive live updates, send an email to me at atraderx@gmail.com.
European Central Bank President Trichet reported yesterday that "2009 will be very difficult, as I indicated last Thursday. The council of governors considers that world and European growth in 2009 will be substantially lower than the forecasts made at the beginning of December." He added "The difficulties are still there, there is not in any circumstance any room for any complacency whatsoever. We must remain permanently ready to act."
The ECB cut rates by 50bps last Thursday and ECB forecasts are expected to be updated in March. ECB member Provopoulos today said the "scope for further rate cuts will be limited." ECB member Nowotny added "The ECB has no interest in interest rates going down to zero." Euro bids are cited around the US$ 1.3055 level.
All the posting are delayed, I can share live updates of my content via emails. If you are interested to receive live updates, send an email to me at atraderx@gmail.com.
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