Economics
ECB Survey Sees Long-Term Inflation Outlook at Record Low
- Draghi signaled officials are preparing fresh stimulus
- ECB is already working informally on ways to redefine its goal
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Longer-term inflation expectations in a European Central Bank survey of professional forecasters dropped to their lowest level on record in the euro area, a day after President Mario Draghi pledged fresh stimulus to bolster sagging price pressures.
Forecasters lowered their projection for inflation over the longer term to 1.7%, suggesting confidence in the ECB to meet its goal of price growth “below, but close to, 2%” is dwindling. Draghi acknowledged concerns on Thursday when he said policy makers “don’t like what we see on the inflation front.”