Alessio Terzi is an economist at the Bruegel Institute, a Brussels-based economic think tank. DW talked to him about the potential impact of the ECB's decision to cut interest rates and expand its bond-buying program.
The European Central Bank has left interest rates and massive support for the eurozone economy unchanged, despite sharp upgrades to the bank's growth forecasts. But inflation will remain stubbornly low, the ECB says.
The European Central Bank has announced a cut in its bond-buying economic stimulus program, taking its biggest step yet towards unwinding years of loose monetary policy introduced in the wake of the financial crisis.
After previously sparking a mini tantrum in financial markets, the ECB has tried to play a balancing act, emphasizing improved growth while tempering expectations to avoid triggering serious market volatility.
Prices in Germany rose faster than expected in November, strengthening the case of the European Central Bank, which has argued that its economic stimulus will eventually lead to more growth and higher inflation.
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