ECB forecasts: 2017 growth forecast boosted to highest since2007
Changes to the ECB forecasts
2017 growth 2.2% vs +1.9% previously
2018 growth unchanged at 1.8%
2019 growth unchanged at 1.7%
Inflation:
2017 inflation unchanged at 1.5%
2018 inflation 1.2% vs 1.3% prior
2019 inflation 1.5% vs 1.6% prior
These forecasts are in line with yesterday's leaks.
Draghi said inflation had yet to show signs of a sustained convincing upward trend. Draghi blamed lower inflation forecasts on the higher euro.
bonus: www.youtube.com/watch?v=a2sWXnfA...
www.ecb.europa.eu/pr...ecb.is170907.en.html
2017 growth 2.2% vs +1.9% previously
2018 growth unchanged at 1.8%
2019 growth unchanged at 1.7%
Inflation:
2017 inflation unchanged at 1.5%
2018 inflation 1.2% vs 1.3% prior
2019 inflation 1.5% vs 1.6% prior
These forecasts are in line with yesterday's leaks.
Draghi said inflation had yet to show signs of a sustained convincing upward trend. Draghi blamed lower inflation forecasts on the higher euro.
bonus: www.youtube.com/watch?v=a2sWXnfA...
www.ecb.europa.eu/pr...ecb.is170907.en.html
It also fell against the euro as ECB head Mario Draghi said the central bank was looking at how to wind down its 60 billion-euro-a-month buying program. The bank kept its growth and inflation outlooks unchanged.
“We will be ready for much of what we have to decide (to scale back stimulus) by October,” Draghi said at the ECB’s post-meeting news conference.
Major world stock markets climbed, while the day’s gains in European stocks were halved at the prospect of ongoing euro strength.
The price of gold rose to a one-year peak after the dollar tumbled on weak U.S. jobs data and unchanged expectations for growth and inflation from the ECB.
In the United States, the economic outlook was less clear.
Markets were still digesting comments on Tuesday from influential dovish Federal Reserve Governor Lael Brainard, who said the Fed should delay raising interest rates until it is confident inflation that is now “well short” of target will rebound.
The dollar also fell against the yen as traders grew uncomfortable with the outlook for U.S. fiscal policy once a three-month extension to the U.S. debt limit that U.S. President Donald Trump said he agreed to on Wednesday expires.
Stocks were damped down by a Labor Department report that showed the number of Americans filing for unemployment benefits jumped to its highest in more than two years last week amid a surge in applications in hurricane-ravaged Texas.
Another major hurricane, Irma, was on track to hit Florida by the weekend after decimating the Caribbean, further pressuring risk-on sentiment