ECB Lifts Economic Growth Forecasts for 2017 to 2.4%

The European Central Bank (ECB) has lifted its economic growth forecasts as growth across the eurozone picks up.

It now expects the eurozone’s economy to grow 2.4% this year, ahead of its previous guidance of 2.2%.

The bank also kept its main interest rate at zero and confirmed its asset purchase programme would drop from €60bn to €30bn a month in January.

ECB president Mario Draghi said: “We are certainly more confident today than we were two months ago.”

Pressure on the ECB to tighten policy has been growing as the eurozone economy has gathered strength.

The bank also raised its GDP growth forecast for next year to 2.3% from 1.8%, and for 2019 to 1.9% from 1.7%.

The ECB slightly lifted its inflation expectation for next year but its guidance remains below its target of close to, but below, 2%.

Mr Draghi said: “Domestic price pressures remain muted overall and have yet to show convincing signs of a sustained upward trend.”

via BBC

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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