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Summary Box: US fears mean risk for ECB (AP)


Published :
Thu, 02 Sep 2010 09:47
By : yahoo.com
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THE SITUATION: Indicators are pointing up at the European Central Bank, which may be about to raise its 2010 economic projections. But that brightening picture is being increasingly darkened by fears about the recovery in the U.S.


THE WORRY: That the loss of momentum in the U.S., the world's largest economy, will have a knock-on impact in the 16 countries that use the euro. If U.S. demand for German cars wanes, for example, growth in Europe could falter too.


WHAT TO DO: The ECB is expected this week to keep its main interest rate at the record low of 1 percent. The central bank is under no immediate pressure to introduce new stimulus measures, though, because economic growth in the eurozone has been much stronger than anticipated.






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