ECB Too Optimistic on Growth, But Hike Still On for 2019

(Bloomberg) -- Will the European Central Bank lift interest rates in 2019? Definitely, if the outlook unfolds as President Mario Draghi and his colleagues at the ECB expect. Growth of 0.5 percent a quarter for much of this year and solid gains in pay would mean there’s little reason to delay. Bloomberg Economics’ forecasts suggest a hike to the deposit rate will still come in 2019, but a little later: BE sees growth slowing to 0.4 percent a quarter, inviting further caution among policy makers.

©2019 Bloomberg L.P.