Mubasher: The European Central Bank (ECB) on Thursday upgraded its economic growth forecasts, but cut inflation projections and showed concerns over potential US tariffs on steel and aluminum.

Speaking at a press conference in Frankfurt, Germany, ECB governor Mario Draghi expected Eurozone inflation to register 1.4% in 2019, down from previous estimates of 1.5%.

However, Draghi maintained inflation forecasts for 2018 and 2020 at 1.4% and 1.7%, respectively.

On the other hand, the ECB’s chairman lifted the bank's expectations for gross domestic product (GDP) growth in 2018 to 2.4% from previous projections of 2.3% and kept 2019’s growth rate forecasts at 1.9%.

The latest official data showed a slowdown in the Eurozone’s inflation towards 1.2% and a rise in economic growth to 2.3% in 2017.

Draghi’s comments came after the ECB kept its interest rates unchanged at low levels, matching analysts’ forecasts, during its monetary policy meeting.

When asked about trade, Draghi expressed worries over US President Donald Trump’s tariff plans and the current state of the global trade relations.

Last week, the US President said that the US was planning to impose 25% tariffs on steel imports and 10% on aluminum.

"What strikes me is whatever convictions you have about trade, we are convinced that disputes should be discussed and resolved in multilateral framework," Draghi stated.

“If you put tariffs on your allies, one wonders who your enemies are," he added.