The European Central Bank adjusted its quantitative easing measures, but maintained a flexible policy.
It said that even though the emergency purchase program ends in March 2022, its bond purchase program remains.
During the press conference, ECB President Christine Lagarde explained that the adjustment was taken to avoid a hard transition for financial markets as the European economy continues to recover.
The central bank said it sees strong growth through 2024, starting with the economy expanding by 5.1% this year. That is slightly higher than the projected 5.0% in September.
The ECB also expects GDP to grow by 4.2%, slightly below the September forecast of 4.6%. But in 2023, it will rise to 2.9%, which is well above the September estimate of 2.1%. That time, the European economy will grow by 1.6%.
Inflation forecasts were also upgraded to 2.6% this year and 3.2% in 2022. In September, the projections were 2.2% and 3.2%, respectively.
By 2023, inflation is likely to rise by 1.8%, compared to the previous forecast of 1.5%. It will remain as such in 2024.
The ECB said it will continue to monitor average inflation even though forecasts say it will soar next year.