Economics
Scale of ECB Outlook Cut Is Said to Justify New Long-Term Loans
- 2019 forecasts for inflation, growth are set for downgrade
- Policy makers will discuss design of new loan operations
This article is for subscribers only.
European Central Bank officials are poised to cut their economic forecasts by enough to justify another round of loans for banks, according to people with knowledge of the matter.
The latest projections show extensive downgrades for inflation and economic expansion in 2019, with an assumption of a pickup toward the end of the year, said the people, who declined to be identified because such matters are confidential. The inflation outlook will be cut through 2021, they said.