Home Economic, Financial news ECB survey sees higher inflation in years ahead

ECB survey sees higher inflation in years ahead

0
7
ECB survey sees higher inflation in years ahead© Reuters. The LP12 Mall of Berlin shopping mall is pictured in Berlin

FRANKFURT (Reuters) – Euro zone inflation could be faster in the coming years while long-term projections remain steady, the European Central Bank’s Survey of Professional Forecasters showed on Friday, underpinning the bank’s cautions optimism.

Headline inflation could be 1.5 percent this year and 1.7 percent next year, both 0.1 percentage point above projections in October, according to the survey of 56 forecasters, an important input in the ECB’s policy deliberations.

The ECB decided on Thursday to keep policy on hold as inflation pressure remains muted but argued that its confidence has strengthened that inflation would rise back to its target of just below 2 percent.

The firming euro could be the biggest obstacle in reaching the objective and ECB President Mario Draghi warned on Thursday that the bank could be forced to rethink its policy strategy if there was unwarranted firming in the exchange rate.

The survey also confirmed Draghi’s confidence in growth as the GDP projection for this year was raised to 2.3 percent from 1.9 percent three months ago. The 2019 growth outlook was lifted to 1.9 percent from 1.7 percent.

For more on the ECB’s survey, click on: https://www.ecb.europa.eu/stats/ecb_surveys/survey_of_professional_forecasters/html/index.en.html

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here