The European Central Bank expects inflation to remain above its 2% target for the next three years, one source told Reuters, more than markets currently expect and signalling its fight against runaway prices is far from over.
The ECB is certain to raise interest rates for a fourth consecutive time on Thursday to rein in inflation, and will also announce new quarterly economic projections, used by investors to work out how many more hikes may be on the cards.
Driven by factors ranging from Russia's invasion of Ukraine to the impact of pandemic-era stimulus, inflation across the 19 countries that use the euro reached 10.6% in October before falling back last month. The new projections will put inflation comfortably above 2% in 2024 and just above it in 2025, said the source, who spoke on condition of anonymity because the forecasts are not yet public.
The new forecasts, which are regarded as crucial in informing the ECB's policy moves until a fresh round of estimates is published in March, are higher than the market currently expects for those two years.The ECB's forecasts rarely prove accurate but the bank uses them as an input in its decisions because it targets "medium term", rather than current, inflation and any change it makes needs several months to work its way through the economy.
The ECB is also seen letting 175 billion euros worth of debt expire next year, out of the 5 trillion euros it owns, to mop up cash from the banking system and drive up long-term borrowing costs., have called for this "quantitative tightening" to start by March, while more dovish members are hoping for a later start.Reporting By Francesco Canepa; Editing by Catherine Evans
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
U.S. Battery Storage Growth To Boom Through 2025Developers and power plant owners plan to significantly increase utility-scale battery storage capacity in the United States over the next three years, reaching 30.0 gigawatts (GW) by the end of 2025, based on our latest Preliminary
Consulte Mais informação »
Porsche CEO Confirms New Hypercar Is Coming After 2025 | CarscoopsZuffenhausen has a number of EVs in line before the successor of the Porsche 918 Hybrid and the Carrera GT arrives
Consulte Mais informação »
2025 Porsche 718 Boxster EV Caught Testing Near Arctic CirclePorsche really tried to fool photographers and onlookers by giving the camouflaged prototype a fake exhaust.
Consulte Mais informação »
Jin becomes first BTS member to enter mandatory military serviceThe band will be on hiatus until 2025 as the members do their mandatory military service
Consulte Mais informação »
New Honda Breeze, Maybach S680 'Haute Voiture', And Xenex MX Speedster: Your Morning Brief | CarscoopsNew Honda Breeze, Maybach S680 'Haute Voiture', And Xenex MX Speedster: Your Morning Brief | Carscoops carscoops
Consulte Mais informação »