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ECB Watch: Draghi’s last shot
A pessimist is never disappointed, the saying goes. Amidst the multiple downward revisions to economic forecasts, most forecasters, including ourselves, have still been too optimistic. For us, the time has come to give up on our hope that the uncertainty burdening the economy would ease in the latter half of this year, which means that we need to revise our outlook for the Euro-area economy and the future path of the ECB’s monetary policy. The same appears to apply to the ECB. President Draghi signalled clearly last week in Sintra that in the absence of improvement, additional stimulus will be required. In light of ... (full story)