FRANKFURT (Reuters) - The European Central Bank lowered its 2014 forecasts for euro zone growth and inflation on Thursday, but kept its medium-term outlook for price developments in place.
As part of its quarterly updates, ECB staff revised down their projections for growth this year to 0.9 percent from its June forecast of 1.0 percent. They now also see 2014 inflation at a midpoint of 0.6 percent compared with 0.7 percent in June.
Annual euro zone inflation hit 0.3 percent in August, a far cry from the ECB’s target of just below 2 percent over the medium term, fuelling concerns about a Japan-like deflationary scenario taking hold in the currency bloc.
Writing by Eva Taylor; Editing by John Stonestreet/Ruth Pitchford