FRANKFURT - The European Central Bank on Thursday lowered some of its inflation projections to reflect a firming euro but lifted some growth forecasts after the euro zone economy registered its best growth run in a decade.
The euro has gained 13% against the dollar this year, a mixed blessing for the ECB as it reflects a robust economy but caps inflation by reducing the cost of imports.
The ECB now sees inflation of 1.5% in 2017 and 1.2% in 2018, compared with its forecasts of 1.5% and 1.3% respectively from June. Both are well below its target of just under 2%.
Growth this year was seen at 2.2% versus an earlier 1.9% forecast.
The following are the ECB staff's new projections for inflation and GDP growth, with June's forecasts in brackets. The ECB updates projections once a quarter.