October 5, 2011
The euro-zone economy is edging closer to a renewed bout of recession, with manufacturers and service providers reporting a decline in activity as consumers cut back spending.
That has prompted the International Monetary Fund to call on the European Central Bank to cut its key interest rate, reversing two hikes in April and July that now seem misjudged.
It is far from clear that the central bank will oblige when its governing council meets Thursday, since data released last week showed the annual rate of inflation jumped to 3.0% in September from 2.5%, well above the target rate of just below 2.0%.
According to a survey of purchasing managers conducted by Markit Economics released Wednesday, the euro-zone economy contracted in September for the first time since the end of the last recession in mid-2009.
More
No comments:
Post a Comment