POST TIME: 23 August, 2019 00:00 00 AM
Eurozone bankers warn of ‘more protracted’ slowdown
AFP, Berlin

Eurozone bankers warn of ‘more protracted’ slowdown

Eurozone central bankers had worried that an economic slowdown hitting the bloc would drag on, as they prepared the ground for a new package

of stimulus measures, according to minutes of their July meeting published yesterday.

In a pessimistic reading of the outlook for the single currency zone, the bankers noted that "there was now an increased likelihood that the economic slowdown or 'soft patch' that had emerged last year would be more protracted than had previously been anticipated".

Current risks were "more pervasive" and may also lead to a cut in the bloc's growth forecast, they warned.

With the downbeat outlook in view, central bankers noted that introducing a package of stimulus measures, rather than individual options, may be more effective.

"The ECB is concerned. That is the main message," said ING analyst Carsten Brzeski.

ECB chief Mario Draghi had signalled after that July meeting that it could unleash a new round of easing measures and slash rates further to fight sluggish growth and shore up stubbornly low inflation.