The Bank of Tokyo-Mitsubishi UFJ, an IBOS member, has produced a report on the main economic and financial indicators in the Eurozone, released on 5 April 2016.
Akkio Darvell, Associate Economist in London, wrote that even in the continued slow economic recovery of the Eurozone, “business sentiment has worsened due to the uncertainty surrounding emerging economies and unsettled financial markets”. Akkio also noted that there has been a negative inflation rate year-on-year for two consecutive months in February and March. In this context, the European Central Bank (ECB) has therefore reduced growth forecasts and GDP outlooks.
Monetary easing measures were therefore introduced on 10 March 2016 by the ECB with the aim of improving the financing environment for businesses, stimulating demand for loans, increasing the momentum of the economic recovery and to eventually meet the medium-term prices target. Mario Draghi, President of the ECB, implied that “the focus of policy tools will shift from “interest rates” to “quantitative easing”.
The Eurozone’s output has been through a period of growth following a degree of contraction, with an increase in total new orders being seen for the first time in three months. Conversely, consumer confidence fell to its lowest level in 15 months in March, owing to the worsening economic outlook. The Euro, on 1st April, reached its highest level since October last year, at US$1.14.
Access the full report on MUFG’s website here.