Eurozone inflation falls to 1 year low – Investec

Research Team at Investec, notes that the Euro area February inflation figures came in softer than expected as headline CPI inflation fell back into negative territory in February at -0.2%, its lowest rate in 12months.

Key Quotes

“The weaker reading will raise expectations of further easing at the ECB’s next Governing Council meeting on 10th March, where Draghi has stated that the council will ‘review and reconsider’ its policy stance. Investec’s view is that the ECB will announce another 10bp cut in the deposit rate taking it down to - 0.40%.”