The Euro area economy is still on track for a modest recovery in 2015. GDP is expected to grow by 1.4% this year and 1.6% next year, slightly above trend. The re-emergence of the Greek crisis over the past few weeks is unlikely to change the near-term outlook.



However, business confidence has been more or less levelling off since the beginning of the year, and growth is not expected to accelerate further over the next two years.



Inflation, although having bottomed, will rebound only gradually and is unlikely to approach the ECB's 2% target anytime soon.



"Therefore, the ECB is expected to continue its asset purchase programme at least until September 2016 and possibly even longer. Moreover, there is a non-negligible chance that additional measures will be announced by the end of this year, and will depend on financial market developments", says Barclays.