During their final decision of 2017, the European Central Bank’s Governing Council made no significant changes during Wednesday’s monetary policy statement. Interest rates were kept at 0.00% for the key rate and -0.40% for the deposit rate, matching the consensus estimate of economists. However, 18-straight quarters of growth and improving fundamentals were reflected in the improved growth forecasts for the coming years, with GDP expectations revised higher to 2.40% in 2017, 2.30% in 2018, and 1.90% in 2019. While inflation projections were also adjusted higher for 2018, comments from President Mario Draghi signify that hitting the 2/.00% target remains years away. Furthermore, he cited global factors as the main downside risks, reiterating that interest rates will remain unchanged for a considerable time after quantitative easing is set to end to maintain support for the economy. The Euro fell against most peers following the announcement, with EURJPY extending losses to near 132.250.
ECB Revises Growth and Inflation Forecasts Higher
Daily Analysis - 15/12/2017