Turbulence predicted as ECB eases monetary policy and Fed tightens
by Larry Elliott from on (#WG5Q)
Faced with flat growth and prices in the eurozone, the European Central Bank is expected to cut rates and expand QE, but the Fed is likely to raise rates in the US
A critical few weeks for the global economy will begin on Thursday when the European Central Bank (ECB) decides whether to take fresh steps to boost growth and stimulate inflation in the 19-country eurozone.
Financial markets are convinced the ECB's president, Mario Draghi, will announce cuts in interest rates and a stepping up of the bond-buying programme known as quantitative easing (QE) after its latest policy meeting in Frankfurt.
Related: Eurozone inflation data raises prospect of fresh ECB stimulus
Continue reading...