ECB Increases Growth Forecasts Gives QE Details

The European Central Bank (ECB) will kick off its 60 billion euro-a-month ($66.3 billion) bond purchases on March 9, ECB President Mario Draghi said Thursday, after it decided to keep rates at record lows.

The central bank also upped its growth forecasts after better economic news from the euro zone, while cutting its inflation forecast for 2015

After a spate of encouraging economic data, including signs that business activity is accelerating, the ECB hiked growth its growth estimate to 1.5 percent for 2015, up from 1 percent in December last year. It expects gross domestic product (GDP) to expand by 1.9 percent in 2016 and 2.1 percent in 2017.

The ECB also revised its inflation forecast for this year to 0 percent, down from its previous 2015 inflation forecast of 0.7 percent, but raised the 2016 forecast to 1.5 percent from 1.3 percent.

It comes after the region’s annual inflation rate turned negative in December 2014, falling to minus 0.2 percent.

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