Fresh ECB staff projections:
- Sees 2015 GDP at 1.0% versus 1.6% in Sept
- Sees 2014 GDP at 0.8% vs 0.9% in Sept
- The risks around the economic outlook are on the downside
- Heightened geopolitical risk could dampen confidence
On inflation:
- Sees 2014 inflation at 0.5% vs 0.6% in Sept
- Projects 2015 0.7% inflation vs 1.3% in Sept
- Projections 2016 inflation at 1.3% vs 1.4% in Sept
- Projections still don’t fully incorporate the recent fall in growth
- In next few months, could experience further downward revisions
Those are some dramatic revisions to growth and inflation and may clear the way for more action from the ECB.