ECB in the bulletin released today raised its growth forecasts for the euro zone to a 3.9% drop in 2009 instead of 4.5% expected previously. In 2010, growth will record 0.3% from 1% and in 2011 it will reach 1.6% instead of 1.5%.

With regard to inflation, the bank expects inflation to reach 1.2% in 2010, higher than prior estimates of 1.1%. For 2011, expectations are unchanged at 1.6%, while on the long term the bank predicts the rate to reach 1.92% from 1.98%.