Comment on the situation on a market 27.03.14

ECB may resort to new incentives

The economicсof the euro zone are still experiencing major problems: there are high unemployment, weak business activity, low production figures and low consumer price inflation, which is in no hurry to grow up and reflects the uncertainty of the population in the future.

From members of the ECB following statements about, that the risk of deflation, though small, but real, and hence there is a high likelihood that the European Central Bank may go the way of incentives that were in the United States. The probability of this in recent days has grown considerably, because quite a large number of members of the ECB say about this. So the head of the Central Bank of Slovakia Jozef Makuch said that: few leaders are willing to accept the ECB non-standard measures to prevent deflation. And the head of the Central Bank of Spain Luis Maria Linde said yesterday that: if you ask me, I would say that the risk of inflation is low, but it is still there; there is a possibility of deflation.

Such attitudes among members of the ECB are putting pressure on the euro, and amid positive data from the U.S. will undoubtedly have a negative impact on the single currency.​