ECB Eases Stance
March 7, 2019
The Governing Council of the European Central Bank revised projected growth and inflation significantly downward, postponed the first possible interest rate hike to beyond 2019, announced a third round of quarterly targeted longer-term TLTROs to help “preserve favorable bank lending conditions and the smooth transmission of monetary policy,” retained a negative risk balance in spite of today’s announced stimulus, but also maintained a baseline projection that sees inflation eventually converging upon the target of below but close to 2.0%, contingent upon maintaining an ample degree of monetary stimulus for as long as is deemed necessary.
Updated GDP and CPI forecasts are compared to earlier quarterly projections released by the ECB staff.
| GDP, % | 2019 | 2020 | 2021 | 2019 CPI, % | 2020 | 2021 | 1 |
| Mar ’19 Dec | 1.1 1.7 | 1.6 1.7 | 1.5 1.5 | 1.2 1.6 | 1.5 1.7 | 1.6 1.8 | |
| Sept | 1.8 | 1.7 | 1.7 1.7 | ||||
| June | 1.9 | 1.7 | 1.7 1.7 | ||||
| March | 1.9 | 1.7 | 1.7 1.7 | ||||
| Dec’17 | 1.9 | 1.7 | 1.5 1.7 | ||||
| Sept |
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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