From financial forecasters to the International Monetary Fund, calls for the European Central Bank to do more to support the euro zone recovery are growing louder.
With inflation well below the ECB’s 2 percent target ceiling and continuing to fall, 20 of 53 economists in a Reuters Poll conducted last week said the bank was wrong to leave policy unchanged at recent meetings and should do more when it meets on Thursday.
And the pressure on the ECB to do more has mounted after the preliminary inflation estimate for March was published on Monday. The data showed inflation cooling down further to 0.5 percent, its lowest since November 2009.
The IMF’s top European official expressed worry over low inflation and said there was more room for further ECB easing after the March preliminary inflation data released.
Policymakers don’t seem to be ready yet, despite inflation falling to new lows each month since October and outright declines in prices in a few peripheral economies.