Frankfurt: ECB goal for 2020
European Central Bank (ECB) updated its inflation and growth forecasts for the next few years on the 14th of December. However, the Frankfurt institution stood by its substantial support to the economy as President Mario Draghi states that it will not reach its desired price growth target by 2020.
ECB maintained its 0% refinancing rate, the 0.25% rate on the marginal lending facility and on deposits at -0.4% which means that banks pay to park money with the ECB.
Following this, growth is set to reach 2.4% in 2017, 2.3% next year in 2018 and 1.9% in 2019.
The euro area has recorded 18 consecutive quarters of expansion since merging out of a double-dip recession, and sentiment surveys point to accelerating momentum which was strengthened by ECB stimulus. Draghi has also stated that upside growth surprises are possible however downside risks are normally related to global factors.