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ECB to cut inflation forecast but keep powder dry
The European Central Bank is set to cut its inflation forecasts on Thursday but hold back from concrete policy action, promising only to beef up its bond-buying programme if prospects weaken further. The bank is expected to leave interest rates unchanged and argue that the chance of missing its medium-term inflation target has increased due to lower oil prices and weaker growth in China. But it is also likely to say that its 1 trillion euro plus asset buying programme is working, albeit slowly, and that the time is not yet right to take further policy action. The ECB launched the 60 billion euro (44.34 billion ... (full story)