(RTTNews) - European stocks closed notably lower on Friday as the mood in the markets turned quite cautious with investors weighing the monetary policy announcements and inflation outlook from major central banks. Despite oil's continued weakness, investors were reluctant to indulge in any big buying. A survey by the European Central Bank showed Euro Zone consumers nudged up their inflation expectations last month. The ECB survey showed median expectations for inflation over the next twelve months increased to 3% from 2.9% in July. Earlier in the day, the Bank of Japan raised its key interest rate by 25 basis points and warned that underlying inflation could exceed its 2% target amid rising wage and price expectations.
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