Inflation in the
18 countries sharing the euro edged up slightly in October, reinforcing
the view that the European Central Bank will hold fire on any additional
policy action at its meeting next week.
A first estimate on Friday from the European Union's statistics office showed consumer prices in the euro zone rose by 0.4 percent in October, in line with market expectations. A day earlier, German data showed inflation in Europe's largest economy slowing in October to 0.7 percent, its lowest reading since May.
Nick Kounis, head of macro research at ABN AMRO, said a number of factors meant ECB action as early as next week was unlikely, but that he expected further measures by the first quarter of next year.
"We still think that the ECB is likely to further step up its monetary easing," he said "If you get any kind of economic shock with inflation this low, there is a risk, albeit a small risk, of deflation."
Read more: Euro zone inflation edges up to dim chance of new ECB action | Reuters
A first estimate on Friday from the European Union's statistics office showed consumer prices in the euro zone rose by 0.4 percent in October, in line with market expectations. A day earlier, German data showed inflation in Europe's largest economy slowing in October to 0.7 percent, its lowest reading since May.
Nick Kounis, head of macro research at ABN AMRO, said a number of factors meant ECB action as early as next week was unlikely, but that he expected further measures by the first quarter of next year.
"We still think that the ECB is likely to further step up its monetary easing," he said "If you get any kind of economic shock with inflation this low, there is a risk, albeit a small risk, of deflation."
Read more: Euro zone inflation edges up to dim chance of new ECB action | Reuters
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