Euro fails to extend gain as Draghi tried to tone down the change in language. While the decision was unanimous, Draghi emphasized that it’s just removing “explicit reference” to the chance of increasing the size of the APP again. However, firstly, ECB will keep interest rate at the current level for an extended period after the APP ends. And ECB is still keeping the option to “extend” the APP beyond September.
Here are the updated economic projections:
GDP
- 2018 at 2.4% vs 2.3% prior
- 2019 at 1.9% vs 1.9% prior
- 2020 at 1.7% vs 1.7% prior
Inflation
- 2018 at 1.4% vs 1.4%
- 2019 at 1.4% vs 1.5%
- 2020 at 1.7% vs 1.7%
