In 2019, the global economy should slow down, the ECB said, noting that the regulator still expects price increases.
Literate investors are already preparing for a slowdown in economic growth around the world, mainly due to higher borrowing costs for dollar debtors and trade tensions between the United States and China. The ECB has supported these expectations in its regular economic bulletin, but at the same time, it is confident that "inflationary pressure will continue" both in the world and in the eurozone.
"Looking into the future, we expect that in 2019, global economic activity will slow down and remain stable in the future. We expect that global inflation pressure will slowly grow as reserve capacity decreases," the ECB said.
The bulletin does not contradict the recent decision of the ECB to stop the program of buying bonds in the amount of 2.6 trillion euros (2.96 trillion dollars) but to continue to reinvest the money that it receives from the redeemed securities. Some have criticized this decision as untimely in view of the weakening economy. But the ECB, whose sole purpose is to reach the inflation target, confirmed its confidence that the base prices in the eurozone will continue to rise.
"Core inflation is expected to gradually grow in the medium term, with the support of the ECB's monetary policy measures, continued economic growth and wage growth," the ECB said.
