ECB SPF lowers 2016 GDP forecast to +1.5% vs +1.7% previously

The ECB Survey of Professional Forecasters (SPF) lowered GDP and inflation forecasts for 2016.

The SPF survey for the second quarter of 2016 was conducted between 31 March and 6 April 2016, while the total number of responses was 53.

Key Headlines:

Longer term EZ inflation forecast unchanged at 1.8%

2016 inflation forecasts +0.3% vs +0.7% prev vs +0.1% by ECB staff

2016 GDP forecast to +1.5% vs +1.7% previously

Separately ECB noted:

Inflation expectations have been revised down for 2016 and 2017, reflecting mainly oil price developments. Longer-term inflation expectations are unchanged at 1.8%

Real GDP growth expectations have been lowered slightly for 2016 and 2017. Longer-term growth expectations are unrevised

Unemployment rate expectations have been revised downwards across all horizons and remain on a downward path