Pressure grows on the ECB to do more

Although euro-zone businesses and consumers are becoming less pessimistic and policymakers are softening their stance on austerity, there is still little sign that the region is on the cusp of an economic recovery. Given this, and the fact that inflation is likely to slow, pressure on the ECB to do more to support the economy looks set to build. That said, we are not expecting any significant announcements at the Bank’s meeting this week.