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ECB cuts inflation forecast, raises growth estimate
June 8, 2017 / 12:44 PM / 4 months ago

ECB cuts inflation forecast, raises growth estimate

    TALLINN, June 8 (Reuters) - The European Central Bank on
Thursday lowered its inflation outlook to reflect a drop in oil
prices but lifted economic growth projections across its
forecast horizon through 2019.
    The mixed outlook is likely to strengthen the case made by
the ECB's more dovish rate-setters, who argue that price
pressures in the euro zone are still too weak for the central
bank to start preparing to unwind its monetary stimulus.
    The ECB now sees inflation of 1.5 percent in 2017 and 1.3
percent in 2018, compared with its forecasts of 1.7 percent and
1.6 percent respectively from March. That is still well below
its target of just under 2 percent. 
    Growth this year was seen at 1.9 percent versus an earlier
1.8 percent.  
    The following are the ECB staff's new projections for
inflation and GDP growth, with March's forecasts in brackets.
The ECB updates its projections each quarter.
                 2017           2018             2019
 GDP growth    1.9 (1.8)      1.8 (1.7)       1.7 (1.6)
 Inflation     1.5 (1.7)      1.3 (1.6)       1.6 (1.7)
 
 (Reporting by Michael Nienaber; Editing by Catherine Evans)
  

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