[ad_1]
FRANKFURT (Reuters) – Eurozone inflation could fall below 2% next year, according to a new poll released by the European Central Bank on Friday, just one day after the bank warned of rising consumer price pressures.
The ECB kept its policy unchanged on Thursday, but eventually acknowledged the growing risks of inflation and opened the door to an interest rate hike this year, the return of a bank that has maintained an ultra-easy policy over the past decade.
This year’s inflation is 3%, according to the ECB’s Professional Forecast Survey, below the bank’s 3.2% forecast. In 2023, price growth could slow to 1.8%, according to a survey in line with the ECB’s own expectations.
Currency block inflation in 19 countries rose by 5.1% last month, more than double the ECB’s 2% target and above expectations, indicating that the bank is struggling to fully understand current price trends.
Responding to the persistent surpluses of recent quarters, ECB President Christine Lagarde said the risks were now “tilted upwards”, suggesting that further readings were still possible before falling in 2022.
The survey, which is usually key to policy discussions, saw inflation rise to 1.9% in 2024 and to 2% over the longer term, defined in 2026.
The survey also shows that this year’s economic growth was 4.2%, in line with the ECB’s December forecast. This is followed by a slowdown to 2.7%, below the 2.9% forecast by ECB staff.
Fusion Media or anyone involved with Fusion Media will not be held liable for any loss or damage as a result of relying on the information contained in the data, estimates, charts and buy / sell signals contained on this website. Please be informed that one of the most risky forms of investment possible is the full information on the risks and costs associated with trading in the financial markets.
[ad_2]
Source link
