Analysts at BNP Paribas note that in the Euro area, growth is sharply decelerating, with some countries like Italy and Germany now close to recession.

• “Extra EU trade is less dynamic, in line with fading external demand, in particular coming from EMEs.
• Inflation is expected to come-back near the 1pct level, as a consequence of falling oil prices.
• The ECB has consequently restarted its Asset Purchases Program (APP) and plan to buy EUR20bn per month (net) over an indefinite period of time. The depo rate was cut to -0.5% and will stay there for long.”