Citigroup sees more QE at ECB’s December meeting
The European Central Bank’s aggressive quantitative-easing program hasn’t even been around to mark its first birthday, and already pressure is mounting on the policy makers to announce more stimulus.
Low oil prices US:CLX5 which have declined more than 50% since their highs in the summer of 2014, are seen as the main culprit behind undesirably low inflation levels in most part of the developed world. In the U.K., annual inflation has also turned negative, while consumer price-growth has been flat in the U.S.
Negative inflation, or outright deflation, makes debt harder to pay off for households and governments, deters some consumer purchases and has as in the case of Japan spurred high unemployment and slowed economic growth.
“Although there is little pressure to deliver more QE immediately,” economists at Citigroup said in a note.
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