Tag Archives: European Central Bank

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Business Xpand – new forecast

According to the new forecast expected economic growth in the effective euro area will slow next year. This will reflect, among other things impact the outcome of the referendum in the UK on economic sentiment. In 2018, growth in the countries of our main trading partners will return to two percent. The decline in industrial producer prices in the euro area, mainly reflecting the low prices of energy commodities, have already begun to subside. Early next year, then these production rates will return to annual growth. Also, foreign consumer inflation will gradually increase. But even by the end of 2018 reaches two percent. View of three-month EURIBOR interest rate on the entire forecast horizon is negative. It thus reflects the still accommodative monetary policy of the European Central Bank. This contributes to consumer expectations of further weakening of the euro against the US dollar. Brent oil price outlook assumes a gradual increase.