ECB Survey Downgrades Growth and Inflation Forecasts

Experts surveyed by the European Central Bank (ECB) have downgraded their forecasts for both inflation and growth in the euro zone as a result of weakness in the oil price and sluggish economic growth in the euro zone.

The results, published on Thursday, revealed that the 61 economists and academics expect inflation to come in at 1 percent in 2015 – down from earlier projections of 1.2 percent – and 1.4 percent in 2016, down from 1.5 percent.

The ECB’s quarterly Survey of Professional Forecasters blamed the current low level of inflation on the dramatic fall in the oil price, weak import prices and the lagged impact of the past appreciation of the euro.

Some 85 percent of respondents revised down their forecasts for 2014 and 2015, and 60 percent lowered expectations for for 2016.

via CNBC

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