ECB Said to Cut Inflation Forecasts After Energy Prices Slide

The European Central Bank is preparing to cut its inflation outlook across its forecast horizon at this
week’s policy meeting because of weaker energy prices, according to euro-area officials familiar with the matter.
The ECB’s draft projections now show consumer-price growth at roughly around 1.5 percent each year in 2017, 2018 and 2019, the officials said, asking not to be identified because the
information is confidential. The previous projections in March foresaw rates of 1.7 percent, 1.6 percent and 1.7 percent, respectively.
The outlook will be presented to the Governing Council at its two-day meeting in Tallinn that starts Wednesday, and the numbers aren’t final until they are published on Thursday.
Forecasts for core inflation, excluding energy and food, are likely to be little changed, and predictions for economic growth are likely to be revised up by about a tenth of a percentage
point, the people said. A spokesman for the ECB declined to
comment.
A downgrade to the inflation outlook would back the view of top policy makers, including President Mario Draghi and Chief Economist Peter Praet, that they must be extremely cautious in
communicating and implementing any exit from monetary stimulus.
The Governing Council is set to debate how to balance policy for the euro area as economic growth solidifies but inflation remains muted.

EUR/USD fell quickly and trading around 1.1262

Източник: Bloomberg Pro Terminal

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