The ECB raises its growth and inflation forecasts
At the press conference given at the end of the Board of Governors meeting in Frankfurt, its president Christine Lagarde was more optimistic than three months ago.
Daniel ROLAND AFP / File
Text by: RFI Follow
2 min
The European Central Bank is maintaining its accommodative monetary course, but is raising its growth and inflation forecasts.
At the press conference given at the end of the Board of Governors meeting in Frankfurt, its president Christine Lagarde was more optimistic than three months ago.
The progress of vaccination particularly pleases the President of the ECB.
Because who says "vaccination" also means "abandonment" of health restrictions and return to normal.
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Of course, many uncertainties remain.
If the number of infections declines, a possible resumption of the pandemic could again weigh on the economy in the short term.
In the second half of the year, however, activity should accelerate.
The ECB expects GDP growth of 4.6% in 2021, against 4% initially.
The Frankfurt institution also forecasts an increase in inflation in the euro zone: it should rise to 1.9%, against 1.5%.
Good news.
We remain below the 2% target set by the ECB.
Inflation linked to the rise in energy prices.
On the credit front, for businesses as well as for households, the institution is worried about the rise in rates.
This increase would be premature.
If banks become cautious now, the ECB believes, they risk jeopardizing the ongoing economic recovery.
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