If replicated across the 128 lenders subject to tests, the regulation could mean no bank will fail or be forced to raise capital. AFP PHOTO / DANIEL ROLAND
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The eurozone's growing fears of deflation will be stirred again Friday when preliminary consumer price data for August is issued, with signs the European Central Bank could be looking at bolder steps to help the region's stagnant economy. Analyst polled by Reuters forecast the annual inflation rate to slip to 0.3 percent from 0.4 percent in July, falling even further below the ECB's target of below but close to 2 percent and mired deep in what the bank calls the "danger zone". However, in remarks that opened the door to possible policy action at the bank's next meeting in September, ECB President Mario Draghi said Friday that the bank is prepared to respond with all its "available" tools should inflation drop further.Speaking at a global central banking conference in Jackson Hole, Wyoming, Draghi said he is confident that the steps already announced, helped by a weaker euro, would boost demand in the ailing economic bloc.But in stronger language than he has used in the past, he stressed the central bank stands ready to do more.Two of China's largest banks, Bank of China and Bank of Communications, last week forecast a rise in bad loans this year as a result of a slowing economy.China has no significant economic data due this week.
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