Expectations mount for ECB QE after inflation tumbles

Investors have today called on the European Central Bank to loosen monetary policy after inflation in the eurozone tumbled last month.

Eurozone inflation fell to 0.5% in May, down from 0.7% in April and well below the European Central Bank's 2% target. The fall means the ECB - headed by Mario Draghi (pictured) - will be expected to take steps to boost growth and counter the threat of deflation when it meets on Thursday. Ahead of the meeting, investors said it is time for the ECB to take action. Dominic Rossi, global chief investment officer, Fidelity Worldwide Investment, said: "Today's inflation numbers underscores the need for the ECB to act. "The ECB has consistently underestimated the deflationary forces threa...