ECB Cuts 2014 Growth, Inflation Forecasts

(RTTNews) - The European Central Bank on Thursday reduced the growth and inflation forecasts for euro area for this year.

The growth forecast for this year was cut to 0.9 percent from 1 percent predicted in June. The outlook for 2015 was lowered to 1.6 percent from 1.7 percent. However, the projection for 2016 was raised to 1.8 percent from 1.8 percent.

The risks to the growth outlook are on the downside, the bank said.

The inflation outlook for 2014 was cut to 0.6 percent from 0.7 percent. The inflation projections for 2015 and 2016 were retained at 1.1 percent and 1.4 percent, respectively.

"The Governing Council...will continue to closely monitor the risks to the outlook for price developments over the medium term," ECB President Mario Draghi said.

"We will focus in particular on the possible repercussions of dampened growth dynamics, geopolitical developments, exchange rate developments and the pass-through of our monetary policy measures."