ECB Economic Bulletin: Will make sure that inflation returns to its 2% target over medium term

In an Economic Bulletin article published on Thursday; the European Central Bank (ECB) underscored challenges to the economy from higher inflation. Ad  |  23/06/2022 09:51

In an Economic Bulletin article published on Thursday; the European Central Bank (ECB) underscored challenges to the economy from higher inflation.

Additional takeaways

The Governing Council will make sure that inflation returns to its 2% target over the medium term.

 The June 2022 Eurosystem staff macroeconomic projections for the euro area foresee annual inflation at 6.8% in 2022, before it is projected to decline to 3.5% in 2023 and 2.1% in 2024 – higher than in the March projections. 

Russia’s unjustified aggression towards Ukraine continues to weigh on the economy in Europe and beyond.

This outlook is broadly reflected in the Eurosystem staff macroeconomic projections, which foresee annual real GDP growth at 2.8% in 2022, 2.1% in 2023 and 2.1% in 2024.

 the Governing Council intends to raise the key ECB interest rates by 25 basis points at its July monetary policy meeting.

Looking further ahead, it expects to raise the key ECB interest rates again in September. The calibration of this rate increase will depend on the updated medium-term inflation outlook.

Market reaction

EUR/USD is extending its decline, as the US dollar gains the upside traction on risk-off sentiment-led by recession fears. The pair is losing 0.76% on the day, currently trading at 1.0481.

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com