Due to the impact of energy prices, the European Central Bank (ECB) on Thursday (September 14) raised its inflation forecasts for the years 2023 and 2024 for the euro zone. Furthermore, it has lowered its growth forecasts until 2025. The institution’s new macroeconomic projections forecast a price increase of 5.6% in 2023, then 3.2% in 2024 and 2.1% in 2025 , approaching the medium-term objective of 2.0%.
Inflation excluding the price of energy and food was maintained in 2023, at 5.1%, while inflationary pressures, fueled in particular by increases in wages and margins, remain high, and was lowered both following years.
GDP (Gross Domestic Product) growth has been significantly reduced to 0.7% in 2023, from 0.9% previously, then 1.0% in 2024 and 1.5% in 2025.
The European Central Bank (ECB) raised its key rates by 0.25 percentage points on Thursday, making a tenth increase in a row as part of its monetary tightening policy to combat inflation in the euro zone.
“Inflation continues to slow but is still expected to remain too high for too long,” the institution said in a statement. The benchmark deposit rate is raised to 4.0%, a level not reached since the launch of the single currency in 1999. The refinancing rate and the marginal lending facility rate are respectively at 4.50 % and 4.75%.
