No response to weaker growth

At its forthcoming policy meeting, the ECB will resist pressure for it to take bolder action to solve the euro-zone’s problems. Despite acknowledging that the economic outlook has deteriorated, President Mario Draghi seems set to argue that the ECB has already done enough by providing liquidity to the region’s banks and cutting interest rates to record lows. Amid growing signs that governments’ commitment to austerity is waning, he will call for them to act to restore markets’ confidence themselves. Moreover, he will re-assert that the ECB will not take steps to finance their deficits for them.