Quotes from Barclays Capital:
-In the euro area, ECB Council members are more cautious about the impact of oil prices on inflation. They now envisage that headline inflation may be negative in early 2015 (we expect inflation to fall to zero in December after 0.3% in November, with downside risk),and some members believe that the ECB should make sure that the current period of low growth and low inflation is as short as possible, given the spill-over effects on unemployment and debt sustainability.
-Therefore, despite the reluctance of Bundesbank President Weidman, who believes that a drop in inflation due to oil prices does not warrant monetary policy response as long as no second-round effects are seen, we think falling oil prices strengthen the chance of ECB action as early as 22 January.
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