The head of the European Central Bank (ECB) Mario Draghi said following a meeting of the board of governors that the eurozone economy is showing steady growth and is not going to interfere with this.
After the IMF raised its growth forecasts and the global elite in Davos praised the brighter prospects for the economy, Draghi said that raising interest rates this year is unlikely.
This provides a green light for economic growth.
Last year, the eurozone economy probably grew at the fastest pace in a decade.
GDP data is expected to show that at the end of 2017, the economy grew for the 19th consecutive quarter.
The Consolidated Business Activity Index (PMI) of 19 Eurozone countries in January rose to a maximum since June 2006.
The data suggests quarterly economic growth of 1%, said IHS Markit chief economist Chris Williamson.
Meanwhile, business sentiment in Germany is at a record high.
Strengthening the euro to a three-year high against the dollar could be an obstacle to economic recovery if it restricts exports and puts pressure on prices.
Much attention at a press conference on Thursday was paid to Draghi’s response to comments by US Treasury Secretary Stephen Mnuchin, who welcomed the weaker dollar.
The head of the ECB said that such comments could violate the agreement on avoiding currency devaluation in order to increase competitiveness. At the same time, Draghi noted that the dynamics of the euro was largely due to improvement in the economy.
The International Monetary Fund earlier this week predicted that the eurozone economy would grow by 2.2% in 2018 compared with a previous estimate of 1.9%.
Draghi did not say that the euro has risen too high. During his press conference, the European currency continued to strengthen. At the moment, the euro exceeded $ 1.25 for the first time since the end of 2014.
Since the beginning of the year, the euro has strengthened by about 4%.
Despite steady growth, inflation's return to the ECB's goal is still dependent on stimulus measures, Draghi said. However, he made an important remark about the timing of the folding of incentives.
"Based on current data, I see very little chance that interest rates can be raised this year," he told reporters. The ECB has confirmed that it will continue to buy assets worth € 30 billion per month at least until the end of September, and reiterated that rates will remain low "for a long period of time and this will continue after the completion of the asset purchase program."
The ECB will update its forecasts for growth and inflation at the next meeting on monetary policy in March. Analysts polled by Bloomberg believe that at the same time, the regulator can adjust its statements about the prospects for politics.