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%.

21.01.2019
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