ECB: "We expect growth to slow down and inflation to rise"

What does the ECB expect in terms of growth in the EU?

The head of the ECB reaffirmed its confidence in the regional economy, saying it would likely be strong enough to generate inflation. However, he warned that global risks have gained more popularity in recent months amid rising protectionism and volatility in financial markets. Draghi also said small reductions were made in EU growth forecasts for this and next year. The central bank expects growth of 2% this year and 1.8% in 2019 - slightly lower than previous projections of 2.1% and 1.9%.

Central bankers from the ECB maintain the bank's forecast for annual inflation of 1.7% by 2020, and Draghi said this is in line with the Bank's target of "close to 2%".

At the moment, it is difficult to imagine an increase in interest rates, but expectations among market participants tend to rise to two increases at the end of 2019.

Mario Draghi for the bankruptcy of Lehman Brothers and the global financial crisis in 2008.

During his speech, Draghi introduced his vision of Lehman Brothers in 2008.

"The first signs of an impending global financial crisis were clear long before Lehman Brothers collapsed," said European Central Bank (ECB) President Mario Draghi.

At a press conference today, Draghi said the first serious signs of the coming crisis date back to September 2007.

Lehman's failure in 2008 covered the global markets as it was the fourth-largest US investment bank.

Source: CNBC

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