Mubasher: The European Central Bank (ECB) President Mario Draghi warned that economic risks facing the Eurozone are now “moving to the downside,” despite the bank’s decision to halt its asset purchase programme.

The ECB held its interest rates at zero, confirming the end of additional increases to its EUR 2.6 trillion ($2.96 trillion) four-year-long bond buying programme on Thursday.

Draghi insisted that the risks surrounding the Eurozone growth outlook “can still be assessed as broadly balanced.”

“However, the balance of risks is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,” the ECB chief noted.

While the ECB reiterated that rates would not budge until at least through the summer of next year, some analysts have been suggesting that Europe’s central bank may not move until 2020.

“We now expect the ECB to hike interest rates in 2020 and not by late 2019 as currently communicated in the banks' forward guidance,” Fitch Ratings said.

Moreover, as recent data had been “weaker than expected,” the outlook for economic growth was revised marginally down for this year to 1.9% and to 1.7% for next.

For inflation forecasts, the consumer price growth is set to come at 1.8% for this year, up from an earlier 1.7% estimate in September.

However, the inflation for the next year is seen at 1.6%, down from earlier 1.7% forecast, whereas inflation is projected at 1.7% and 1.8% in 2020 and 2021, respectively.

By 3:23 pm GMT, the EUR/USD pair fell 0.31% to $1.1334.