Slack & euro could yet force the ECB's hand

While last week’s decision by the ECB to leave policy on hold may be a signal that the euro-zone’s long monetary policy loosening cycle is finally over, the combination of the greater emphasis on the slack in the economy and the strong euro could yet prompt more action. Last week’s data provided further evidence that euro-zone households are failing to pull their weight as the region attempts to exit its crisis. This looks set to continue for a while yet.