Bank of France cuts growth forecasts for 2018, 2019
The French central bank cites a weaker-than-expected start to 2018 as one of the reasons for lowering this year's forecast
- 2018 GDP growth forecast lowered to 1.6% from 1.8% in June
- 2019 GDP growth forecast lowered to 1.6% from 1.7% in June
- 2018 HICP inflation forecast raised to 2.1% from 2.0% previously
- 2019 HICP inflation forecast raised to 1.7% from 1.5% previously
The central bank also cites a less favourable international environment as the other reason for lowering the growth forecasts for this year and next. But the positive thing from the report is that they are feeling more confident about inflationary pressures and that will help to fuel the ECB's rhetoric that inflation is still seen to converge to its goal.