ECB warning as growth forecast cut

A large group of professional forecasters cut their outlook for eurozone inflation and growth, underlining a trend that could prompt the European Central Bank to take more policy action to kick-start the region’s flagging economy.

The 61 economists, academics and other forecasters surveyed by the Frankfurt-based bank, expect eurozone inflation of 1% next year and 1.4% in 2016, data released yesterday showed — down from earlier forecasts of 1.2% and 1.5% respectively.

Citing falling oil prices and widespread political tensions, they also predicted economic growth would slow to 1.2% next year, having previously forecast 1.5%.