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Heightened uncertainty weighing on euro zone
FRANKFURT (Reuters) - Economic growth in the euro zone economy is weak and "heightened uncertainty" is weighing on confidence, the European Central Bank said on Thursday in its monthly bulletin, adding that inflation expectations remained firmly anchored.
The ECB cut its main benchmark interest rate by a 1/4 point to 0.75 percent last week and lowered its deposit rate, which acts as a floor for the money market, to zero from 0.25 percent.
As usual, the editorial of the bank's bulletin was virtually identical to its main policy statement, read out by President Mario Draghi after its meeting last Thursday.
"Inflationary pressure ... has been dampened," the ECB said in the bulletin. "At the same time, economic growth in the euro area continues to remain weak, with heightened uncertainty weighing on confidence and sentiment."
"Looking beyond the short term the Governing Council expects the euro area economy to recover gradually, although with momentum dampened", it added, citing tensions in some euro area sovereign debt markets, balance sheet adjustment and high unemployment as factors weighing on growth.
Below is a list of articles and special sections the bulletin contains. The articles can often shed light on the ECB's thinking about key issues and give a good insight into the type of analysis the bank uses to support its policy decisions.
* How does the current recovery in selected advanced economies compare with an average recovery?
* Recent developments in the euro area construction industry
* Recent developments in the Okun relationship in the euro area
* Fiscal challenges from population ageing: new evidence for the euro area
* Monetary and fiscal policy interactions in a monetary union
* Assessing the anchoring of longer-term inflation expectations
(Writing by Paul Carrel)
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