FOREX TradingCharts.com

Financial News: ECB Trims Eurozone Growth Forecast As Draghi Warns

ECB Trims Eurozone Growth Forecast As Draghi Warns On Protectionism Again

09/13/2018 - 11:20:00 (RTTNews)

(RTTNews) - The European Central Bank on Thursday lowered its growth forecast for the euro area for this year and next as the bank's chief Mario Draghi again warned about the risks from the rising protectionism.

Earlier in the day, the Governing Council left its interest rates, asset purchases and forward guidance unchanged. The bank confirmed that the asset purchases will be halved to EUR 15 billion this month and plan to wind them down at the end of this year "subject to incoming data confirming our medium-term inflation outlook."

"Uncertainties relating to rising protectionism, vulnerabilities in emerging markets and financial market volatility have gained more prominence recently," Draghi said in the introductory statement.

"Significant monetary policy stimulus is still needed to support the further build-up of domestic price pressures and headline inflation developments over the medium term."

During the post-decision press conference, Draghi announced the latest Eurozone macroeconomic projections from the ECB Staff that revealed a downgrade to growth projections for this year and next, which was mainly due to the possible weaker contribution from foreign demand. Inflation outlook was left unchanged.

The growth forecast for this year was lowered to 2 percent from 2.1 percent. The projection for next year was lowered to 1.8 percent from 1.9 percent. The outlook for 2020 was maintained at 1.7 percent.

Risks surrounding the euro area growth outlook are assessed as broadly balanced, Draghi said.

"Uncertainty around the inflation outlook is receding," Draghi said. The bank maintained its inflation projection for this year, next and 2020 at 1.7 percent.

The bank expects core inflation to pick up towards the end of the year and thereafter to increase gradually.

Draghi expressed concern over the high government debt in some countries and urged them to rebuild fiscal buffers. He stressed that full adherence to the Stability and Growth Pact is critical for safeguarding sound fiscal positions.

Regarding the health of the financial system 10 year since the global financial crisis, Draghi said banks are stronger today, but there was no room for complacence, especially as lots of business has migrated from banks to non-banks.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2018 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


UK Inflation At 7-Month High (58 min(s), 37 sec(s) ago)
(RTTNews) - UK inflation rose to a seven-month high in August, the Office for National Statistics ...Full Story»

South Africa Inflation Unexpectedly Slows In August (01 hr(s), 12 min(s), 37 sec(s) ago)
(RTTNews) - South Africa's consumer price inflation slowed in August, after surging in the pre ...Full Story»

SECO Raises Swiss GDP Growth Outlook (02 hr(s), 50 min(s), 37 sec(s) ago)
(RTTNews) - The Swiss federal government's expert group raised its growth outlook for 2018 but ...Full Story»

Europe's Passenger Car Registrations Increase: ACEA (03 hr(s), 32 min(s), 37 sec(s) ago)
(RTTNews) - Europe's passenger car registrations increased at faster rates in July and August, ...Full Story»

Australia Westpac Leading Index Signals Slowing Growth Momentum (04 hr(s), 13 min(s), 37 sec(s) ago)
(RTTNews) - Australia's leading index signaled a slowing growth momentum into the second half ...Full Story»

European Economics Preview: UK Inflation Data Due (04 hr(s), 41 min(s), 37 sec(s) ago)
(RTTNews) - Consumer and producer prices from the UK and current account from euro area are due on ...Full Story»

Malaysia's Inflation Eases More Than Forecast (05 hr(s), 05 min(s), 37 sec(s) ago)
(RTTNews) - Malaysia's inflation eased more-than-expected in August on fuel cost, figures from ...Full Story»

BoJ Maintains Monetary Stimulus (05 hr(s), 28 min(s), 37 sec(s) ago)
(RTTNews) - The Bank of Japan kept its ultra-loose monetary policy unchanged, as widely expected, ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

UK Inflation At 7-Month High

09/19/2018 - 04:52 AM (RTTNews)
(RTTNews) - UK inflation rose to a seven-month high in August, the Office for National Statistics ...Full Story>>

South Africa Inflation Unexpectedly Slows In August

09/19/2018 - 04:38 AM (RTTNews)
(RTTNews) - South Africa's consumer price inflation slowed in August, after surging in the pre ...Full Story>>

SECO Raises Swiss GDP Growth Outlook

09/19/2018 - 03:00 AM (RTTNews)
(RTTNews) - The Swiss federal government's expert group raised its growth outlook for 2018 but ...Full Story>>

Europe's Passenger Car Registrations Increase: ACEA

09/19/2018 - 02:18 AM (RTTNews)
(RTTNews) - Europe's passenger car registrations increased at faster rates in July and August, ...Full Story>>

Australia Westpac Leading Index Signals Slowing Growth Momentum

09/19/2018 - 01:37 AM (RTTNews)
(RTTNews) - Australia's leading index signaled a slowing growth momentum into the second half ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.