ECB Draghi Says European Inflation Will Be Below Target For Two Years

The European Central Bank (ECB) on Thursday left its benchmark interest rate unchanged at 0.25 percent as expected, after surprising markets with a rate cut last month.

It also kept its forecast for an economic contraction of 0.4 percent in the euro zone in 2013. For 2014, it expects growth of 1.1 percent, a slight improvement on the 1.0 percent seen in September. For 2015 it forecast growth of 1.5 percent.

At a press conference, ECB President Mario Draghi said that risks to its economic outlook remained on the downside. He also warned the euro zone could face a lengthy bout of low inflation.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza