Flanders expects ECB to act after December deflation

JPMAM's market strategist Stephanie Flanders has said she expects the ECB to act imminently to shore up the economy after the eurozone fell into deflation in December.

Giving investors her outlook for the coming year, Flanders (pictured) stated it is unlikely Draghi will achieve his goal of returning to the ECB's balance sheet to its 2012 level with only the measures announced last autumn. "In the summer of last year, Draghi said he wanted the balance sheet to return to 2012 levels. It is going to be difficult for the ECB to do that with the measures already announced." She added the eurozone inflation figure only compound the problem. However, Flanders cautioned the ECB is restricted in what it can actually do to strengthen its balance sheet. "W...