Interest rates in the Eurozone will remain at their current levels, or lower, "for an extended period of time" and quantitative easing, i.e. the purchase of government bonds by the ECB, will continue "until the end of December 2017 or even further if necessary”. The ECB writes it in the Economic Bulletin, removing fears of a tightening with inflation in the Eurozone rising to 1,8% in January, with a sharp leap compared to 1,1% in December 2016.
Headline inflation has therefore increased, but this is largely due to the base effects of energy prices, so that "core inflationary pressures remain contained". The ECB notes that inflation excluding food and energy, 0,9% in December for the Eurozone, "has not shown convincing signs of an upward trend". For growth "further consolidation is expected" but the risks "remain oriented to the downside" according to the Eurotower.
"Downside risks to the corporate investment outlook relate to geopolitical factors, including uncertainties related to the UK's exit from the EU and US trade policies."
