Euro zone economy will hum at moderate pace
Euro zone economic growth is expected to hum at a moderate pace over the coming year. That’s what a recent Reuters survey has shown. The poll’s views have radically changed since the American election and five months after the UK voted to abandon exit the European Union.
Notwithstanding what appears to be a strong likelihood for an American interest rate lift next month, the ECB looks set to keep going the other way, reporting an extension to its quantitative easing program beyond March 2017.
Following the shock from the Brexit vote, that hasn't affected either UK or euro zone growth yet, nevertheless, political uncertainty will keep holding back the euro zone from making any more progress on growth.
Minutes from the ECB's last month gathering published on Thursday revealed that policymakers suggested that December would be a major month for the future course of policy. There was also true evidence of concern regarding weaker wage growth, thus suggesting further easing is probable.