The European Central Bank on Thursday raised Eurozone growth forecasts for this year and next and said the risks to the outlook were balanced.
Policymakers also raised the inflation forecast for the two years, but expect underlying inflationary pressures to remain subdued.
The bank's rate-setting body, the Governing Council, avoided signaling a tapering of its asset purchases, economists said.
"Our new staff projections point to a gradual increase in underlying inflation pressures throughout the projection horizon, although the pressures remain subdued in the context of still significant economic slack that will only be absorbed gradually over the projection horizon," ECB President Christine Lagarde said in the press conference.
"Headline inflation is expected to remain below our aim over the projection horizon."
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