ECB President Christine Lagarde said in the post-meeting press conference that incoming data pointed to “muted inflation pressures and weak euro area growth dynamics”. However, there were “some initial signs of stabilisation” in slowdown and a “mild increase” in underlying inflation. Job and wages growth continue to “underpin the resilience” of Eurozone economy too.
There were some slight adjustments in the new Eurosystem staff macroeconomic projections. GDP growth are forecast to be at 1.2% in 2019 (revised up from Sep’s 1.1%), 1.1% in 2020 (revised down from 1.2%) and 1.4% in both 2021 (unchanged) and 2022. HICP inflation is projected to be at 1.2% in 2019 (unchanged), 1.1% in 2020 (revised up from 1.0%), 1.4% in 2021 (revised down from 1.5%) and 1.6% in 2022.
