Mon. Feb 17th, 2020

The ECB lowers its growth forecast for 2019 to 1.1% (1.2% in June)

The European Central Bank (ECB) has revised downwards 1 tenth, up to 1.1%, its growth forecasts for 2019, compared to 1.2% forecast in June.

The president of the European Central Bank (ECB), Mario Draghi, said today in a press conference after the meeting of the Governing Council that they expect inflation to be 1.2% this year (1.3% forecast in June).

The entity has also lowered its growth forecasts for 2020, by two tenths, to 1.2% (1.4% expected in June), but maintains its estimates for 2021 of a growth of 1.4%.

The ECB has also revised downwards its inflation forecasts for the next two years and expects a rate of 1% in 2020 and 1.5% in 2021 (1.4 and 1.6% respectively expected in June).

Draghi said the information available recently shows "a more prolonged weakening of the euro area economy."

"This is reflected in the new projections of the ECB staff, which show a decrease in inflation prospects," Draghi added.

The ECB has decided today to lower the interest rate charged to banks for excess reserves by 10 points to -0.50%.

In addition, the ECB will begin buying back in November euro area debt worth 20,000 million euros a month and will conclude purchases shortly before interest rates start to rise.

. (tagsToTranslate) ECB (t) low (t) forecast (t) growth (t) June

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