Degradation of inflation targeting, proceeded by the European Central Bank, on a background a decline in the index last month, while the analysts are pushing to take action about the threat of deflationary threat. Meanwhile, the ECB kept unchanged its forecast for growth in the Eurozone in 2014. In particular, the ECB retains unchanged the forecast for GDP growth of 1% in the Eurozone in 2014 and 1.5% in 2015.
As regards inflation, the ECB considers that it formed in 2014 to 1.1% against 1.5% in the esteem of the previous quarter . In 2015 inflation is expected at 1.4% compared to the initial estimate of 1.6%. Finally, for 2016 is estimated at 1.7%. The ECB’s long term target for inflation of 1.9%. In its monthly report, the ECB keeps freezing interest rates low for an extended period of time.
As usual, the report reflects the statements of the ECB Governor Mario Draghi, the last ECB meeting, where it was decided to maintain the interest rate at a record low of 0.25%. The ECB continues to expect that interest rates will remain low for an extended period, the central bank in its monthly bulletin.
By Nicole P.