This morning’s news
from the European Central Bank is that inflation held steady in June. This was expected, but means that the Bank’s target is still a long way off. Inflation is at 0.5 per cent; the target is 2 per cent; and given that Germany posted higher than expected inflation figures on Friday, there had been hopes that the rest of the Eurozone may have also moved higher. The ECB’s negative deposit rate seems to have slightly increased lending, but again not to the levels that are required. The Bank will announce its next monetary policy report on Thursday and market analysts say that they will be expected to do more. Read the full story.