6/14/2018, 2:47 PM (Source: TeleTrader)
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ECB lifts inflation outlook, cuts 2018 GDP estimate

Mario Draghi, president of the European Central Bank, expressed confidence on Thursday in Latvia that inflation would converge toward the target of just under 2%. Macroeconomic measures have weakened, but still remain in line with projections, he added. Business investment is underpinned by favorable financing conditions and demand, Draghi said.

Protectionism is rising and volatility in the markets requires monitoring, the top policymaker said. Private consumption is underpinning employment, partly due to labor market reforms, and household wealth is increasing, the asserted.

The forecast for this year's growth was downgraded to 2.1% from 2.4%. The rates for 2019 and 2020 were held at 1.9% and 1.7%, respectively. The inflation rate is expected to reach 1.7% in 2018 and the next two years, ECB chief revealed. The estimate was raised by 0.2 percentage points for this year and by 0.3% for both 2019 and 2020. The institution kept rates unchanged today and estimated the levels won't changed before the summer of next year.

Breaking the News / IT