Fresh ECB staff projections:

  • Sees 2015 GDP at 1.0% versus 1.6% in Sept
  • Sees 2014 GDP at 0.8% vs 0.9% in Sept
  • The risks around the economic outlook are on the downside
  • Heightened geopolitical risk could dampen confidence

On inflation:

  • Sees 2014 inflation at 0.5% vs 0.6% in Sept
  • Projects 2015 0.7% inflation vs 1.3% in Sept
  • Projections 2016 inflation at 1.3% vs 1.4% in Sept
  • Projections still don’t fully incorporate the recent fall in growth
  • In next few months, could experience further downward revisions

Those are some dramatic revisions to growth and inflation and may clear the way for more action from the ECB.