In Europe The China slowdown is really affecting the 19-nation region

The European Central Bank on Thursday cut its forecasts for eurozone GDP growth for this year and next, squarely laying blame on falling demand from China

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Various analysts are saying China's slowing economy has already put a dent in Europe's recovery and could force the region's central bank to dump even more money into the system for a much needed cushion effect.

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The European Central Bank on Thursday cut its forecasts for eurozone GDP growth for this year and next, squarely laying blame on falling demand from China and other emerging economies.

It also cut down its projections for inflation, saying consumer prices in the 19-country region may rise by just 0.1% this year. Furthermore, deflation may even return briefly due to falling oil prices.

"We may see negative numbers on inflation in the coming months," ECB President Mario Draghi told reporters.

After cutting interest rates as low as the bank could go, Draghi launched a massive stimulus program earlier this year geared at firing up growth and inflation.

READ: The US market is picking up despite steady slump in China

According to CNN Money, the ECB has been buying 60 billion euros ($67 billion) worth of government bonds and other assets since March -- effectively printing money -- and the purchases are due to run for at least another year.

Draghi also made it clear that the bank could increase the size of its purchases, and prolong the program if necessary.

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