The European Central Bank forecasts 1.5% growth this year, 1.9% in 2016, and expects 2.1% in 2017. Mario Dragui ad the launch of the “QE” for March 9.
The European Central Bank has revised upwards its forecast for 2015 growth while zeroing its inflation forecast to take account the fall in energy prices and the weak euro, announced on Thursday its president Mario Draghi. The ECB now expects economic growth of 1.5% in the euro area this year, half a point more than expected in December, after the 0.9% recorded last year. It raised its growth forecast for 2016 to 1.9% against 1.5% a three months, and precise build 2017 on a rise of 2.1% of GDP of the 19 countries that have opted for the single currency.
“The latest economic data, in particular the results of investigations available until the end of February, reported further improvement in economic activity at the beginning of this year. We expect that future economic recovery is broadening and gradually strengthens “, said the President of the ECB .. ” Compared with the economic projections of the Eurosystem December 2014 projections for real GDP growth in 2015 and 2016 were identified, reflecting the favorable impact of lower oil prices, the real effective exchange rate of the weaker euro and the impact of recent measures monetary policy of the ECB ‘, he said.
Meanwhile, the ECB considers that consumer prices should remain unchanged this year, so that they were waiting for December inflation of 0.7%. Inflation is expected to start in 2016, faster than expected and there are three months to 1.5% against 1.3% in the previous forecast. It is projected at 1.8% in 2017, close to the objective so that the ECB has set an inflation below 2% similar -but de. Mario Draghi said that the amendments took into account the impact of falling oil prices, the depreciation of the euro and its own recent decisions of monetary policy.
Launch of the “QE” March 9
Other highly anticipated announcement, about the famous “quantitative easing” (QE “): the ECB will launch “March 9″ its extensive purchase program on the secondary market of public and private debt (totaling 1.140 billion euros), with the hope of increasing prices in the euro zone, said Mario Draghi. The Bank announced the program in January, with the aim to inject 60 billion euros per month in the economy of the euro area September 2016 at least. This date, however, no longer an end in itself. The program will be extended “beyond if necessary” , said Mario Draghi, until the ECB notes a “continuous adjustment of inflation” to the target fixed by the keeper of the euro, or “close but below” 2%.
Firming towards Greece
About Greece, which could run out of funding despite the extension obtained last month of the financial assistance provided by its creditors internationauxl, President of the ECB again -and no great surprise-, stood firm. Greece should not expect the European Central Bank that it is raising the ceiling on short-term borrowings imposed in Athens, he suggested, and noted that the institution’s statutes forbade him for the time of buy Greek state bonds as part of its massive purchases of public debt (the “QE”). European rules prohibit the ECB direct or indirect financing of states, he recalled. “The ECB is an institution founded on the rule. This is not a political institution “, has he dropped sharply.
While the CAC 40 was the highest of the year in session Thursday afternoon, the euro fell on his side against the dollar, falling to a new low in eleven and a half years, unable to sustain a short rally fueled by comments considered encouraging the President of the European Central Bank (ECB) Mario Draghi on the economic outlook in the euro zone
Source: AFP
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