Eurozone: ECB expects more inflation but no recession in 2023

The European Central Bank (ECB) revised its inflation forecasts for 2023 and 2024 in the euro zone upwards on Thursday.

From now on, the monetary institution expects average inflation to rise to 6.3% in 2023 (compared to 5.5% forecast previously), before declining to 3.4% in 2024 (compared to 2.3% forecast until there) and 2.3% in 2025, close to the 2% target in the long term.

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The euro zone should also escape recession next year, according to the ECB.

GDP (gross domestic product) growth is expected to reach 0.5% in 2023, compared to 0.9% forecast in September, then 1.9% in 2024 and 1.8% in 2025.

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The ECB also announced that it would raise its main key rates by 0.50 percentage points, opting for a more moderate monetary tightening than in past months.

The rate remunerating bank cash not distributed in credit goes up to 2% and that on short-term refinancing operations to 2.50%, the highest since the end of 2008, detailed in a press release the ECB.

It "

" its rates in the coming months.