June 2018 ECB press conference
- Progess toward sustained adjustment of inflation substantial
- Longer term inflation expectations well anchored
- confident that convergence to TGT will continue
- convergence to target will be maintained even after asset purchase program
- significant policy stimulus still needed
- SUpport will be provided by net asset persistently in the year
- The ECB will remain vigilant and adjust all its instruments as inappropriate to ensure inflation moves toward the government councils target
- moderation of growth includes temporary factors, external trade and uncertainty
- says growth remains solid and broad-based
- the latest economic results are weaker but remain consistent with ongoing and solid economic growth
- consumption is supported by ongoing employment gains, and growing household wealth
- housing demand remains robust
- 2018 GDP growth at 2.1% versus 2.4% in March
- 2019 GDP growth of 1.9% versus 1.9% in March
- 2020 GDP growth at 1.7% versus 1.7% in March
- risk surrounding growth outlook broadly balanced, but uncertainties including threat from global trade and protectionism
- headline inflation likely to hoover around current levels for remainder of the year
- levels of underlying inflation remain generally muted
- ECB expects 2018 inflation at 1.7% versus 1.4% in March
- ECB expects 2019 inflation 1.7% versus 1.4% in March
- ECB expects 2020 inflation and 1.7% versus 1.7% in March
- inflation forecast changes reflect mainly oil prices
- broad-based growth calls for rebuilding of fiscal buffers, particularly in countries where government debt remains time
The ECB lowered growth prospects for 2018 and remained growth unchanged going forward. The see higher inflation but the expectations remain below the 2.0% target still. \
The EURUSD ticked to a low of 1.1711 - just below the 1.1712-17 area of support from Nov/Dec 2017 lows, 38.2% and the 100 bar MA on the 4-hour chart.
Q&A up next
