According to a top European Central Bank official, the euro zone is likely to see a “very mild recession” this year. The official also noted that higher oil prices should not have a long term impact on inflation.
Benoit Coeure, an executive board member of the ECB, told the Nikkei newspaper that euro zone growth was low due to the lack of bank credit and certain government budget cutting. The bank did raise its outlook for inflation due to the higher oil prices, but believes inflation will not have a long term impact. [Read more...]