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ECB under pressure to cut rates to zero and consider QE as eurozone faces spectre of deflation
Eurozone inflation fell to its lowest level in nearly four years in March raising the prospect the European Central Bank may have to take radical action to combat the threat of deflation across the currency bloc. Consumer price inflation in the Eurozone fell to 0.5 per cent in the month, down from 0.7 per cent in February, official data from Eurostat showed. Economists had forecast a 0.6 per cent reading. Most stocks markets across Europe fell back on the news, erasing earlier gains. Germany’s DAX 30 index shed 0.05 per cent, or 4.38 points, to 9,582.81, while France’s CAC 40 index lost 0.18 per cent, or 7.95 ... (full story)
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