ECB’s Nowotny Hints at Cut to Economic Forecast

European Central Bank Governing Council member Ewald Nowotny suggested the institution may cut its economic forecast when it presents an updated estimate next week.

“It’s no secret that we are seeing somewhat of a downturn in the economy,” Nowotny told reporters in Alpbach, Austria, late yesterday. “Germany is no longer able to be a locomotive for growth.”

Recovery in the 18-nation euro area stalled in the second quarter after its three biggest economies failed to grow, with Germany contracting 0.2 percent. Data due later today will probably show that inflation in the region slowed to 0.3 percent this month, according to the median economist forecast in a Bloomberg News survey.

Bloomberg

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