In an article of Economic Bulletin published on Thursday, the European Central Bank (ECB) underlines the challenges posed to the economy by rising inflation.
The governing council will ensure that inflation returns to its 2% target in the medium term.
The macroeconomic projections of the Eurosystem experts for the euro area in June 2022 forecast annual inflation of 6.8% in 2022, before slowing to 3.5% in 2023 and 2.1% in 2024higher than the March projections.
Russia’s unjustified aggression against Ukraine continues to weigh on the economy in Europe and beyond.
These perspectives are largely reflected in the macroeconomic projections of the Eurosystem experts, who foresee a annual real GDP growth of 2.8% in 2022, 2.1% in 2023 and 2.1% in 2024.
The governing council plans to raise key ECB interest rates by 25 basis points at its July monetary policy meeting.
In the longer term, expects to raise official ECB interest rates again in September. The calibration of this rate hike will depend on the update of the medium-term inflation outlook.
Source: Fx Street