The European Central Bank announced on Thursday that it will raise its benchmark rates by 50 basis points despite the banking turmoil. It no longer says it will “significantly” raise rates in the coming months.
At the same time, the central bank raised its 2023 growth forecast to 1.0% from the previous 0.5%. By 2024, GDP growth would be 1.6% compared to the 1.9% initially forecast.
downward revised inflation
As regards inflation, the ECB is revising its forecasts for this year downwards, now standing at 5.3% in the euro area compared to the 6.3% previously forecast.
Given the banking turmoil (SVB, Credit Suisse), the ECB assures that the banking sector in the euro zone “is resilient”.
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Source: BFM TV
