Euro-Zone Growth Slows to 0.2%, Reinforcing ECB Rate Hold at 2.5%

Waning euro-zone economic momentum will likely keep the European Central Bank from raising interest rates this week, with policymakers expected to hold the deposit rate at 2.5% and delay a final hike until December, Bloomberg reported. A Bloomberg poll suggests third-quarter expansion moderated to 0.2% from a 0.6% jump in the second quarter, which was inflated by a bumper result in Ireland. Separate surveys show a clear upward inflation shift is lacking in October across the bloc's four biggest members. Output between July and September was dampened by summer heat waves, low waterway levels and surging global bond yields. Germany, the region's largest economy, likely stagnated in the third quarter, according to the Bundesbank, while France's private sector shrank in October as mass protests and fiscal doubts weighed on activity. Carrefour SA warned that nationwide looting will hit performance, and its shares posted their worst week since the global financial crisis. Inflation appears destined to reach 4% before year-end. ECB President Christine Lagarde said this month that yields have risen "notably" since September's meeting, a shift that will slow growth.