ECB to hold back further policy action

ECB plans: The skyline of the city centre of Frankfurt, Germany, including the new headquarters of the European Central Bank (ECB), in front. The IMF said the ECB should consider extending its quantitative easing programme – EPA

FRANKFURT: The European Central Bank (ECB) is set to cut its inflation forecasts but hold back from concrete policy action, promising only to beef up its bond-buying programme if prospects weaken further.

The bank is expected to leave interest rates unchanged and argue that the chance of missing its medium-term inflation target has increased due to lower oil prices and weaker growth in China.