Key Points of the Bulletin:

At its monetary policy meeting on 13 December, the Governing Council decided to end the net asset purchases in December 2018, while keeping the key ECB interest rates unchanged and enhancing the forward guidance on reinvestment.

• While global economic activity has remained resilient, it has become more uneven and signs of moderating momentum are emerging.
• Long-term risk-free rates have declined in the context of heightened geopolitical uncertainty and a perceived deterioration in the macroeconomic outlook since the Governing Council’s meeting in September 2018.
• Euro area real GDP increased by 0.2%, quarter on quarter, in the third quarter of 2018, following growth of 0.4% in the previous two quarters.
• GDP Projections: The projections foresee annual real GDP increasing by 1.9% in 2018, 1.7% in 2019, 1.7% in 2020 and 1.5% in 2021.
• The Euro area general government budget deficit is projected to have declined significantly in 2018 but is expected to increase somewhat next year.

Source: European Central Bank