Read more on this subject: European Union
News Story Source: https://www.zerohedge.com, by Tyler Durden
While a faint glimpse of reality did sneak through into the ECB's latest set of economic projections, with the central bank now projecting that for the first time in over a decade, Europe's 2021 inflation will surpass the ECB's stated target of 2.0%, rising to 2.2% from the June projection of 1.9%, the balance of the outlook remained troubling, with the ECB now predicting inflation drops to 1.7% in 2022 and then again to 1.5% in 2023.
As Bloomberg's Ven Ram put it, "the key number in all of ECB President Christine Lagarde's projections is the HICP inflation number of 1.5%, which shows a modest revision that was expected by the markets. In other words, there's still no sight of 2% inflation over the medium term. So after all these years of negative rates, APP and PEPP, there will be no end to yet-more accommodation and the ECB is saying its inflation target is still very much work-in-progress. And that against a backdrop wh
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