The European Central Bank (ECB) has raised its forecast for eurozone inflation in 2004 to 1.8pc from 1.6pc previously. The ECB maintained its forecast for 2003 inflation at 2.1pc, but lowered its forecast for 2005 inflation to 1.6pc from 1.7pc. But the central bank repeated that official interest rates were appropriate, given that inflation is still expected to drop below its 2pc tolerance ceiling next year. The ECB raised its forecast for 2004 GDP growth to 1.6pc from 1.5pc, but trimmed its projection for 2005 growth to 2.4pc from 2.5pc. The forecast for 2003 growth was left unchanged at 0.4pc. The forecasts are the mid-point of ranges published in the ECB's December monthly bulletin. Faster global growth is seen boosting exports starting next year despite the stronger euro and will be a key driver for strengthening output, while domestic demand will also pick up as the labour market gradually starts to improve, the ECB said. //www.fxcentre.com