The latest survey by the European Central Bank (ECB) of consumer inflation expectations shows that one-year forward inflation projections remain steady at 4%.
Three-year forward inflation projections have cooled down to 2.9% from March’s reading of 3%
Five-year forward inflation projections have remained steady at 2.4%. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region.
The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa.