The European Central Bank speeded up its plans to tighten monetary policy Thursday after admitting that the war in Ukraine would drive inflation higher and hit growth for the next couple of years. The Frankfurt-based central bank cut its growth forecasts through 2024, and now sees growth of only 3.7% this year, down from 4.2% previously. It sees inflation, meanwhile, at 5.1% this year, rather than the 3.2% it previously forecast. As expected, the ECB said it will temporarily boost the bond purchases under its long-running Asset Purchase Program, which predates COVID-19, to 40 billion euros ($44 billion) in April, falling to 30 billion in May and 10 billion in June. Thereafter, it said, "the calibration of net purchases for the third quarter will be data-dependent and reflect its evolving assessment of the outlook."
Post by: Republic of Turkiye Ministry of Trade