European Central Bank (ECB) falls Eurozone growth and inflation forecasts
European Central Bank (ECB) President Mario Draghi, the bank's March meeting of the monetary policy statements
The European MB, which has not changed its interest rates, has changed in oral guidance. The statement in the statement earlier, "at least until the summer of 2019 interest rates are stipulated to be fixed," the statement is "at least for the period of 2019 is expected to remain constant" change.
TLTRO 3 program announced
Explaining the 2-year TLTRO 3 program that will be provided to the banks in the Eurozone with long-term financing, the ECB intends to approach the target in the medium term. Draghi said the new measures adopted by the bank were unanimous.
Protectionism and other elements of the negative impact of trust in the President of the ECB, the data is weak, he said.
Borrowing conditions in the Eurozone will continue to remain positive, Draghi said, adding that new measures will ensure the lending conditions are met. Draghi said TLTRO is designed on the funding needs of banks and the details will be explained.
Euro Area growth and inflation forecasts dropped
According to President Draghi's statement, the ECB reduced the 2019 growth forecast for the Eurozone from 1.1 percent to 1.7 percent. He underlined that the risks related to the economic outlook are downward. The growth forecast for the year 202 decreased from 1.6 percent to 1.6 percent.
The Bank lowered inflation forecasts for all maturities. The 2019 inflation forecast for the Eurozone fell from 1.6 percent to 1.2 percent. 2020 estimate fell from 1.7 percent to 1.5 percent, while the 2021 estimate fell from 1.8 percent to 1.6 percent.
ECB President Draghi stressed that the short-term growth outlook is weaker than expected and stated that inflation will continue to decline towards the end of the year.
Draghi noted that the new measures announced by the Bank have strengthened the supportive policy, and that the ECB's monetary policy is now more supportive.
External factors on the economy will continue to affect the expression of Draghi, "AMB's moves can not stop the effects of protectionism." said.
"AMB sees the possibility of recession in the Eurozone very low." Draghi said the moves of the ECB would improve the resistance of the economy.
The future decisions of the bank will depend on the economic outlook, Draghi said, discussing the bank's long negative interest rate process.
Dragh also said they were discussing how to draw verbal referral on interest to March 2020.
