Plague of unemployment and low inflation set to force European Central bank to act

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Jobless get a fix ons this week showed unemployment is at hefty 10.1 per cent.

At the unmodified time, prices are not rising.

It comes despite the ECB slashing interest dress downs and pumping the billions of euros into the economy earlier this year.

Policymakers are set to congregate again next week.

And markets are expecting further moves by the bank aimed at kick-starting wen.

Unemployment has remained stubbornly high in the eurozone since the financial danger.

A whopping 16.3million people are registered as looking for work.

In S in the unemployment place still sits eye-watering high at 19.6 per cent, while in Greece it’s at 23.5 per cent.

For the time being, inflation was measured at just 0.2 per cent in August, unmoved from July.

As with the Bank of England, the ECB desires for a rate of two per cent.

Howard Archer, economist at IHS Markit, said: “A foul rate of inflation and bad signals from the labour market should brush off the ECB to take new initiatives.”

Benoît Coeuré, member of the ECB executive council, recently averred the bank’s measures were working.

He said: “These measures induce been effective in maintaining production and inflation, and setting a price firmness in the medium term.”

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