text: ECB's Draghi slashes growth forecasts
  Euro sinks as ECB slashes growth forecasts and warns of the 'threat of protectionism'
  Published Thu, Mar 7 20198:50 AM EST Updated Thu, Mar 7 201910:44 AM EST
  The euro zone's central bank slashed its growth forecast for 2019 to 1.1 percent from an earlier forecast of 1.7 percent made in December.
  The euro, which had already been falling after an earlier rate announcement, dropped again after Draghi's remarks. At 2:00 p.m. London time, the single currency was down 0.5 percent against the dollar, trading at $1.1245.
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  "The impact of these factors is turning out to be somewhat longer-lasting, which suggests that the near-term growth outlook will be weaker than previously anticipated," Draghi also said Thursday.
  Given the worsening economic conditions, the ECB also lowered its inflation forecasts for 2019. Annual inflation is set to hit 1.2 percent this year. The December forecasts had pointed to a headline inflation target of 1.6 percent. The central bank is positive that its new set of measures will help bring inflation closer to its target of "close but below 2 percent."
  The ECB's interest rates remain at record lows and are set to remain at these levels at least until the end of the year. The central bank also announced a fresh set of loans to euro area banks on Thursday, aimed at boosting the real economy.
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  "Whilst such an announcement was expected at some point in the coming years the market is welcoming this proactivity. The euro exchange rate is down alongside European government bond yields," she said.
  "This should help stabilize sentiment and activity in the euro zone. But for a meaningful turnaround in Europe we look further afield to what's happening in Beijing. In our view a notable rebound in activity in China is required to see a significant reacceleration in Europe over the course of the year."