ECB to Lower Inflation Expectations – Goldman Sachs

Goldman Sachs expects the board of the European Central Bank (ECB) to lower their inflation projections for 2020-2021.

This comes in light of the large downside surprise in August inflation and the appreciation of the Euro (EUR).

As for inflation expectations for 2022, they are forecasted to remain unchanged.

Moreover, additional accommodation, which will probably be in the form of additional asset purchases, could also be signaled, if inflation remains well below its targeted levels.