Euro trims losses near $1.162 after ECB rate hike and forecast upgrades
The euro pared earlier losses to trade around $1.162 after the ECB raised interest rates as expected. The ECB also upgraded inflation and GDP growth forecasts, keeping its 2026 inflation forecast at 3.0% while raising 2027 and 2028 projections.
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12:31:21 PM UTC
SquawkNews
MORE ECB MINUTES: BASELINE SCENARIO 2026 GDP FORECAST UP TO +0.9% (VS +0.8% IN JUNE), 2027 RAISED TO 1.4% (VS 1.2%), 2028 UNCHANGED AT 1.5%
12:31:23 PM UTC
SquawkNews
MORE ECB MINUTES: BASELINE SCENARIO 2026 INFLATION FORECAST UNCHANGED AT 3.0%, 2027 RAISED TO 2.5% (VS 2.3% IN JUNE), 2028 RAISED TO 2.1% (VS 2.0%)
162 after the European Central Bank raised rates as expected and lifted its inflation and growth forecasts for the coming years. The ECB made its second rate increase since the US-Iran war began and said inflation is likely to stay well above its 2% target for an extended period. 1%. 4% for 2027, citing greater-than-expected resilience in the economy.
5%.