It expects inflation in the eurozone to remain "very low" for some years as threats to economic growth increase.
ECB president Mario Draghi said Europe's economic recovery would continue, "albeit at a somewhat weaker pace than expected".
The euro fell sharply as Mr Draghi also hinted that the bank could expand its stimulus programme if necessary.
He was speaking after the ECB kept its main interest rate on hold at 0.05%.
The
ECB is now forecasting economic growth in the eurozone of 1.4% in 2015,
down from 1.5%, and 1.7% in 2016, compared with its previous projection
of 1.9%.
However, Mr Draghi said that risks to the outlook for
economic growth and inflation had worsened since mid-August, when the
latest projections were calculated.
Euro falls
"Lower
commodity prices, a stronger euro, somewhat lower growth, have
increased the risk to a sustainable path of inflation towards 2%," he
told a news conference in Frankfurt.
The euro fell sharply following Mr Draghi's comments, dropping a cent against the dollar to $1.1127.
He also admitted that inflation could turn negative in the coming months.
The bank expected inflation to be 0.1% for 2015, rising to 1.5% in 2016 and 1.7% in 2017, dampened by lower energy prices.
The
ECB made no change to its bond-buying programme, but Mr Draghi said it
could be extended beyond its planned conclusion in September 2016 if
necessary.
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