After euro zone inflation disappointed once again in April, the focus is back on European Central Bank (ECB) as yet another rate decision looms. However, for the sixth month in a row, analysts expect little or no action from bank President Mario Draghi – instead he’ll be resorting to talking the talk.
Analysts have been waiting for action from the ECB ever since it last cut interest rates in November in response to fears that the region could be heading for a period of growth-sapping deflation.
But euro zone inflation picked up slightly in April, according to data released last week, coming in at 0.7 percent – not as much as hoped for and still a way off the ECB’s 2 percent target. Nonetheless, economists think it could be strong enough for the central bank to resist a material change in policy stance.