-
ECB's Praet warns of deflationary pressures in euro zone
The European Central Bank's chief economist said on Friday the euro zone faces deflationary pressures, and the bank's president stressed that interest rates must remain low "because the economy is weak". With euro zone inflation running at 0.7 percent, well below its target of just under 2 percent, a raft of ECB speakers this week have said it is open to taking fresh measures to support the economy. Vice-President Vitor Constancio said on Tuesday "everything is possible" and both he and Praet have said asset buying - or quantitative easing (QE) - is an option after years in which the bank's policymakers have ... (full story)