Reuters: ECB will postpone rate hike until fourth quarter of 2019

According to a Reuters survey, the European Central Bank will postpone the increase in deposit rates until the fourth quarter of 2019. Earlier, the increase was planned for the third quarter of the year, but concerns about the German economy forced to move the deadline for the implementation of the Bank’s decision. Analysts revised growth forecasts for the largest EU economies downwards. The economies of Germany, France and Italy will grow at a slower pace in 2019. The reasons for the decline were the slow growth of the US economy and the trade dispute with China. The ECB will raise the deposit rate to -0.2% from -0.4%, and the refinancing rate will rise to 0% from -0.2% at the beginning of next year. The plans for the development of the European economy will also be affected by the decision on Brexit, the parties to which have not yet come to an agreement. Experts have increased the likelihood of a downturn from 30% to 35%. Inflation in the euro area will almost reach the target value of the ECB at 2% and will be 1.6%. Experts also lowered the growth forecast for the European economy to 1.5%.

Related news

The confidence of German entrepreneurs in the country's economy grew in March

The German entrepreneur confidence index was 99.6 points in March, having risen from 98.7 points in February, the Ifo Institute reported. The index showed growth for the first time after a six-month decline and turned out to be better than ...

Citigroup improved its forecast for the average annual price of Brent for 2019

In the March review, Citigroup improved its forecast for the average annual price of Brent crude for the current year from $64 to $70 per barrel, Bloomberg reported. Citigroup experts expect that in the second quarter, this sort of oil will ...

Qatar Airways has postponed the delivery of the Boeing 737 MAX

Airline Qatar Airways decided not to replenish its fleet with Boeing 737 MAX airliners in April of this year, announcing the cancellation of the planned delivery until the reasons for the crash of this plane in Ethiopia were determined. As ...

The head of the Federal Reserve Bank of Chicago notes a slowdown in the US economy, but considers a recession unlikely

The head of the Federal Reserve Bank of Chicago, Charles Evans, in an interview with CNBC during the Asian Investment Conference, Credit Suisse, commented on financial market concerns about the inverted yield curve. He noted that the flat yield ...

OPEC + countries canceled April meeting in Vienna

The member countries of the OPEC + agreement to reduce oil production have made a formal decision to cancel the ministerial meeting scheduled for April in Vienna. This was reported to Bloomberg by OPEC delegates who wished to be unnamed. According ...
Get in touch with us