The inflation rate in the European area reaches 0,5%
As of today, the countries in the European area report persuading economic revival after the protracted financial crisis. However, there is quite a number of urging problems there to be tackled by the financial analytics. Given this fact, Managing Director of the International Monetary Fund Christine Lagarde called on the management board of the European Central Bank to mitigate requirements and ease the monetary policy so that to combat more efficiently a drop in a rate of inflation in the EU, CNBC reports.
On Wednesday Christine Lagarde spoke at the Johns Hopkins University School of Advanced International Studies in Washington. In her speech, she said that the risk of low inflation is still a threat to the EU. Ms. Lagarde noted that a long-term slow price growth can cause reduction in demand and production volume and lessen job opportunities. The chief of the International Monetary Fund believes that it is necessary to ease the monetary policy, using also unconventional solutions. This will broaden economic cooperation and facilitate the economic growth in this region.
The investors are waiting for the decision to be passed later today at the meeting of the European Central Bank executives. The majority of the market players do not expect to get a lower interest rate.
