Highlights of the ECB economic forecasts

  • 2017 seen at 2.4% vs 2.2% prior
  • 2019 seen at 1.9% vs 1.7%
  • 2020 growth seen at 1.7%

Those are some fairly big upgrades and the euro likes them. Highs of the day at 1.1860 in EUR/USD. On that note, Draghi said a downside risk was foreign exchange movements.

  • 2017 inflation 1.5% (unchanged vs prior)
  • 2018 inflation 1.4% vs 1.2% in Sept
  • 2019 inflation 1.5% vs 1.5% prior
  • 2020 inflation 1.7%

Inflation is higher but that's less than hoped. With forecasts like that, they won't be hiking until 2020.