AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Business & Finance

ECB sees lower inflation but growth outlook brighter: de Guindos

  • The central bank has said it will announce the terms of its new stimulus package, mainly consisting of more bond purchases and subsidised loans to banks, at its December meeting.
Published November 28, 2020

FRANKFURT: The European Central Bank expects prices in the euro zone to keep falling this year and rebound more slowly in 2021, than it previously thought even as the prospect of a coronavirus vaccine boosts the growth outlook, ECB vice president Luis de Guindos said in an interview published on Saturday.

The ECB is due to unveil its new projections on Dec 10, along with a new stimulus package. De Guindos' comments suggest a cut to the inflation forecast for this year, next year and possibly even 2022 is on the cards.

"Inflation will be negative until the end of the year and we expect that it will turn positive next year," de Guindos told Finnish newspaper Helsingin Sanomat. "All in all, we expect inflation to be close to 1pc in 2021 and to see it moving up towards 1.2pc or 1.3pc in 2022."

Christine Lagarde's deputy also confirmed consensus expectations for a contraction in the euro zone economy this quarter but said the prospect of a vaccine against the novel coronavirus meant the outlook further out appeared brighter.

"Negative quarter-on-quarter growth is now the most realistic scenario for the end of the year," de Guindos said.

"But the medium-term outlook - mainly because of the ray of hope brought by news of the vaccine - looks brighter."

In September the ECB said it saw euro zone inflation at 0.3pc in 2020, 1.0pc in 2021 and 1.3pc in 2022 while it expected real GDP to fall by 8.0pc this year before rebounding by 5.0pc in 2021 and by 3.2pc in 2022.

The central bank has said it will announce the terms of its new stimulus package, mainly consisting of more bond purchases and subsidised loans to banks, at its December meeting.

Comments

Comments are closed.