Reductions to the euro zone's growth forecasts on Thursday by the European Central Bank pulled the common currency of the European Union down from eight-week highs against the world's reserve currency, Bloomberg reports.
The reductions to forecast for development and growth by the central bank of Europe demonstrates that the sovereign debt scourge is burrowing deeper. And it comes on the same day that the leader of the body is set to announce an aggressive tack of challenging the damaging tendencies of the euro debt crisis, which follows a policy meeting.
"Generally, I think it's a positive," Europe chief economist Peter Westaway with Vanguard Asset Management told Reuters. "There is a long-term question of whether this will be enough to meet the long-term financing needs of Italy, and that probably remains."
The euro zone's gross domestic product is projected to drop 0.4 percent this year, more so than the 0.1 percent forecast 90 days ago, according to the ECB.
President Mario Draghi indicated that the central bank does not expect preferential treatment over other financial institutions that will serve as creditors if bond purchases result in defaults, according to Reuters.
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