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Evaporating inflation and growth put pressure on central banks Jan 23, 2015
 

Workers install the chassis along a production line at a truck factory of Anhui Jianghuai Automobile Co. Ltd (JAC Motors) in HefeiBy Jonathan Cable and Koh Gui Qing LONDON/BEIJING (Reuters) - Businesses across Asia and Europe have slashed prices at the start of the year to drum up trade, surveys showed on Friday, a day after the European Central Bank voted to print money in a bid to revive inflation. Euro zone firms cut prices at the fastest rate in nearly five years and Chinese factories cut them for the sixth straight month, while economic growth in South Korea slowed sharply, raising the prospect of more easing from central banks in Asia. The ECB took the policy plunge on Thursday, announcing a government bond-buying programme which will pump hundreds of billions of euros in new money into a sagging euro zone economy. "There is no doubt that across the world central banks are being a little bit more aggressive.


 
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