The European Central Bank on Thursday said it expects inflation to hit 1.7 percent in 2020, still short of the bank's target of just under 2.0 percent that is seen as most favourable for growth.

For 2018, the bank slightly lifted its forecast from 1.2 percent to 1.4 percent.

Consumer prices are expected to rise by 1.5 percent in both 2017 and 2019, according to staff projections, unchanged from the last forecasts unveiled in September.