Europe Downgrades Growth Forecast

Published / Last Updated on 06/06/2013

Europe Downgrades Growth Forecast.

The European Central Bank has (ECB) voted to keep rates at an all time low. Keeping rates at a all time low has been prompted by the ECB reducing its growth forecast for the Eurozone.

The expected contraction for EU economies is 0.6% GDP this year, up from the previous fall prediction of 0.5%. The benchmark bank base lending rate by the ECB was held at 0.5% after it was cut last month.

Our View - No surpises here. The power houses for Europe i.e. Germany and France are in slowdown and whilst the UK is showing modest recovery, we are not in Euro, so the decision by the ECB merely reflects decisions that both the Bank of England and the US Federal Reserve have already been making.

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