ECB to cut 2017 inflation forecast on Thursday: Bloomberg

FRANKFURT (Reuters) - The European Central Bank (ECB) will cut its 2017 inflation forecast to 1.6 percent from 1.7 percent, Bloomberg reported on Wednesday, a projection that would support more policy easing but argue against radical action.

The ECB declined to comment on the report.

The bank is expected to ease monetary policy when it meets on Thursday as the inflation outlook continues to soften, in part due to low commodity prices, and it is seen missing its price growth target of just under 2 percent for years to come.

But the marginal cut in the staff inflation projections would indicate that the outlook has not deteriorated as fast as some expected and the bank would only need to take limited action.

(Reporting by Balazs Koranyi; Editing by Louise Ireland)

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