On Thursday, the 7th of March, during the ECB minutes, the European Central Bank had trimmed its growth forecast for 2019 to 1.1 from previous 1.6 percent and lowered inflation forecast for 2020, 2021, alongside delayed a rate hike, saying that an interest rate hike might not come before 2020, while their previous statement had been quoted saying that an ECB interest rate hike might come as early as Summer 2019.
Apart from that, the ECB had also announced new monetary injection through long-term low-cost debts, acknowledging that the financial slowdown in Europe was more grievous in nature than previously assumed.
Following the reveal of new monetary policy, despite a gloomier outlook and disdainful distress ahead, the ECB president Mario Draghi had been quoted saying that the European Central Bank had not shifted its assessment that risks were balanced to the downside despite policy changes.
Apparently, Draghi’s comment was attempted to downsize the impacts of external factors such as the uncertain course of Brexit and rising protectionism, as Thursday’s (March 7th) monetary policy shift would likely to escalate resilience over the eurozone economy.
Never the less, the governing council of European Central Bank had rated the probability of a recession over the Euro zone economy “very low”, added Draghi.