The head of the European Central Bank (ECB) has said deflation is not a threat to the eurozone economy.
The ECB kept its benchmark interest rate at 0.25% after its latest meeting. The rate was cut to its current record low in November.
ECB president Mario Draghi said: “We have to dispense with this idea of deflation. The question is – is there deflation? The answer is no.”
Eurozone inflation slowed to 0.7% in January from 0.8% in December.
The figure fuelled worries about whether the euro bloc could suffer deflation, potentially de-railing economic growth.
via BBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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