In the latest economic update for eZonomics, ING senior economist Teunis Brosens likened central banks to superheroes “riding to the rescue again”. But he warned central bankers could not perform miracles. Their steps were set to bring only “temporary relief” to the world economy.
Turning in circles
Examining the Eurozone – the 17 countries that use the euro as a common currency – ING expected another European Central Bank rate cut in coming months. Brosens said a technical recession (defined by two consecutive quarters of negative gross domestic product) seemed imminent.
“The Eurozone keeps turning in circles. The June summit delivered too little to put a permanent lid on the crisis.”
Central bank support were also expected in the US and China. In the United States, the summer dip in economic data looked more serious than last year’s. And China was suffering from the slowdown in its export markets.