June 8, 2017 / 12:46 PM / 6 months ago

ECB cuts inflation forecast, raises growth estimate

TALLINN (Reuters) - The European Central Bank on Thursday lowered its inflation outlook to reflect a drop in oil prices but lifted economic growth projections across its forecast horizon through 2019.

FILE PHOTO: Inflated euro sign is seen outside the new headquarters of the European Central Bank (ECB) in Frankfurt, January 22, 2015. REUTERS/Kai Pfaffenbach/File Photo

The mixed outlook is likely to strengthen the case made by the ECB’s more dovish rate-setters, who argue that price pressures in the euro zone are still too weak for the central bank to start preparing to unwind its monetary stimulus.

The ECB now sees inflation of 1.5 percent in 2017 and 1.3 percent in 2018, compared with its forecasts of 1.7 percent and 1.6 percent respectively from March. That is still well below its target of just under 2 percent.

Growth this year was seen at 1.9 percent versus an earlier 1.8 percent.

Reporting by Michael Nienaber; Editing by Catherine Evans

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