The year on year drop in industrial production is the biggest drop since the series began in 1968. The year on year drop in manufacturing output is the biggest since Jan 1981.
Comments from ECB members suggest that the ECB has neared its rate cutting cycle with the sentiment that the ECB and other central banks now need to be vigilant for an upturn in inflation.
With data still coming in progressively weaker in the euro zone and expected to weaken further, inflationary pressure will be very difficult to manage. The Irish government is set to announce its budget- the expectation is for higher taxes and less spending…the economy is contracting sharply and its economy boasts the worst deficit in Europe.
Overnight the Reserve Bank Of Australia cut interest rates to a record low of 3.0%, with unemployment still rising there could be further cuts moving forward, RBA governor Glenn Stevens said the board saw scope for a further modest reduction.
Elsewhere, the Bank Of Japan left rates unchanged at 0.1% and expanded their list of acceptable collateral for money market operations to help liquidate the economy.
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