Inflation in the eurozone slowed to 1% in July according to Eurostat, against a 2% target pursued by all G7 central banks.
Inflation dropped by 0,3% compared to June.
In June 2018 inflation in the Eurozone hit 2,2%, which triggered a decision to unwind the ECB’s quantitative easing policy. This policy is now in reverse and speculation abounds of the ECB slashing interest rates and expanding its bond-buying program.
Fears of the Sino-American trade war, US protections, and the threat of a disorderly Brexit weigh heavily on the export-driven EU economy. Currently, the ECB’s marginal lending rate stands at 0.25% and its deposit carries a negative interest of -0.4%.