ECB cuts inflation and growth forecasts
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E-mailFRANKFURT (Reuters) - The European Central Bank lowered its forecasts for inflation and economic growth on Thursday, citing a slowdown in emerging markets and weaker oil prices.
The revisions could raise doubts about the effectiveness of its $1 trillion euro asset buying program, which is aimed at stimulating growth and boosting consumer prices after years of low inflation and a short bout of deflation.
ECB President Mario Draghi said inflation risks remained to the downside, mainly because of crude oil, which has fallen 30 percent in price since May after plunging last year.
A key measure of the market's longer-term inflation expectations, the five-year, five-year euro zone breakeven forward has fallen below 1.7 percent.
The ECB sees inflation at 1.1 percent next year, below its June forecast of 1.5 percent, and expects GDP growth in 2016 of 1.7 percent versus its June forecast of 1.9 percent.
(Reporting by Balazs Koranyi, John O'Donnell and Francesco Canepa; Editing by Catherine Evans)
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