While the eurozone economy has been picking up steam, the European Central Bank will probably continue its monetary stimulus program in an effort to boost inflation rates. May’s rate is the lowest rate since December 2016 when inflation stood at 1.1 per cent. Its primary aim is to get inflation back toward its target and then to start easing off the bond-buying program. Modest underlying rates of inflation point to sluggish wage demands even at a time when the eurozone economy is performing relatively strongly and unemployment has been dropping. Some economists think Draghi may drop any reference in his statement to the possibility of lowering interest rates or increasing stimulus going forward.

Source: thestar May 31, 2017 19:18 UTC