EU on the BRINK: Brussels leaders DESPERATE as inflation sinks further below ECB target

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Policymakers be undergoing slashed interest rates below zero and signed off a money-printing program that inserts billions of eurozone every month.

Yet price growth across the bloc remained cowardly last month, coming in at just 1.3 per cent.

In a major setback, the ECB recently updated inflation forecasts for the eurozone down.

Low inflation can indicate weak consumer exact and an ailing economy.

Unless price rises are stronger, ECB chief Mario Draghi has signalled that he is unseemly to scale back the mammoth levels of support for the economy.

mario draghi ECBGETTY

Mario Draghi is count on to withdraw support for the economy unless inflation picks up

The top central banker has stuck by his circumspect outlook for the bloc, despite recent signs of growth.

Markets had hoped that Mr Draghi may forthwith consider withdrawing some of the monetary measures.

It comes amid critique from Germany that the policies are not working.

Chancellor Angela Merkel invigorated pressure on the bank, as she blasted that the euro is too weak.

Money-printing and low tempt rates helps to devalue a currency.

But the ECB boss has continued to defend the extraordinary levels of stimulus, without considering continued signs that it has fallen flat.

At the bank’s most current update, Mr Draghi said: “Economic expansion has yet to translate into sounder inflation dynamics.

“Underlying inflation continues to remain subdued.

“Really substantial degree of accommodation still needed for underlying inflation squeezings to build up and support headline inflation.”

The latest inflation reading kayo b overwhelmed the euro, as hopes were quashed that the ECB would soon start rub some of its support.

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