The outlook of eurozone rates is presumed to continue increasing by 1.7 percent annually until 2020 despite risks of weak inflation and economic growth, according to a survey from the ECB on Friday.
The ECB announced their stimulus program of easing up to 2.6 trillion euro ($2.96 trillion) at the end of the year and increase rates after summer next year as they try to keep the inflation in spite of growth uncertainty.
The recent survey of Professional Forecasters supports the outlook on Friday, keeping their rates unchanged for headline inflation in the next two hikes to be at 1.7 percent and 1.9 percent in long-term.
However, the forecast for ECB is to reduce their estimates for core inflation and cut down more volatile energy and food prices and economic growth in 2018 and the next.
The target inflation rate of the eurozone’s central bank aims to be close to two percent but less than this number in medium-term.
The survey shows that the ECB growth of core prices will still increase by 10 basis and slow more than 1.2 percent this year and 1.5 percent the next.