by Francesco Canepa and Balazs Koranyi
FRANKFURT (Reuters) – The European Central Bank (ECB) expects inflation to remain above its 2% target over the next three years, a source told Reuters, a more pessimistic forecast than markets , suggesting that the fight against rising prices is far from over.
The ECB, which has raised interest rates by 200 basis points since July to curb inflation five times above its target, is expected to raise the cost of credit further on Thursday after its meeting. of monetary policy. It will also provide an update on its new economic projections, data used by investors to determine the number of additional rate hikes that could be considered.
The new ECB projections will point to inflation well above 2% in 2024 and just above that threshold in 2025, the source said on condition of anonymity, as the forecasts have not yet been made public.
Asked, a spokesperson for the ECB declined to comment.
Economists polled by Reuters in a survey published last week predict that inflation, which stood at 10% in November according to Eurostat’s first estimate, will fall to 6.0% in 2023, 2.3% in 2024 and 1, 9% in 2025.
(Report Francesco Canepa; French version Claude Chendjou, edited by Blandine Hénault)
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