ECB's crucial 2024 projection to put inflation above 3% | Reuters News Agency

ECB’s crucial 2024 projection to put inflation above 3%

Reuters scored two major victories in its reporting this week of the European Central Bank’s cliff-hanger interest rate meeting. First, on the eve of the meeting, it exclusively reported that the ECB would revise upwards its inflation forecasts, acknowledging that inflation would remain above 3% next year – well above target. That was seized on by financial markets who on Wednesday starting reversing their bets that policy-makers would keep rates on hold and instead put their money on there being a further 25-basis point hike. When both the inflation forecast revision and the rate hike were finally confirmed on Thursday, Reuters was first yet again to report key details of the ECB’s written statement – winning the first snap on the rate move by one full second and also ahead on the ECB’s carefully worded message that it believed rates were now at sufficiently restrictive levels to tame inflation – the component of the statement which drove eurozone bond yields lower and European shares higher.  

Market Impact

The ECB’s quarterly projections will put inflation north of 3% in 2024, the source said, confounding expectations for a small cut. The updated 2024 projection is well above the central bank’s 2% target and will be higher than the 3% forecast in June. 

Article Tags
Topics of Interest: Economy
Type: Reuters Best
Sectors: Economy & Policy
Regions: Europe
Win Types: ExclusivitySpeed
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
FILE PHOTO: A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker//File Photo
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