ECB holds 2012 growth, inflation forecasts steady

The European Central Bank on Wednesday held its forecasts for both economic growth and inflation in the 17-country euro area steady. ECB President Mario Draghi said the bank was continuing to expect eurozone gross domestic product growth (GDP) to contract marginally by 0.1 percent this year, the same forecast it had made three months ago. At the same time, the bank trimmed its forecast for 2013, when growth was set to pick-up to a moderate 1.0 percent, instead of 1.1 percent as predicted in March. At the same time, euro area-wide inflation was to reach 2.4 percent in 2012, way above the ECB's target of close to but just below 2.0 percent. Inflation would slow to 1.6 percent in 2013, the bank predicted.