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FT: ECB Internal Model Indicates Inflation Hitting 2% By 2025

ECB

An article appearing in the FT reports that an internal model used by the ECB suggests that the 2% inflation target will be met by 2025, suggesting that interest rates would be raised in around two years.

  • The results are unpublished and the FT cites an ECB official who stated that the scenario should be "taken with a pinch of salt" and that it is only one input considered in official forecasts.
  • The euro appeared to track higher on the headline, with EURUSD quickly hitting 1.1771 before sliding back to 1.1761.
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