EU growth forecasts: ECB's Draghi upbeat, shifts inflation expectations; OECD also positive

"Our monetary policy measures have contributed to a broad-based easing in financial conditions, a recovery in inflation expectations and more favourable borrowing conditions for firms and households," ECB President Mario Draghi said after the bank left its key interest rate unchanged at 0.05%.

While Mr Draghi said the recovery was "on track", he noted the ECB had "expected stronger figures", however.

"There has been a loss or some loss of momentum... mostly due to weakening of the economies outside the euro area, emerging markets mostly."

Inflation in the eurozone is now expected to be 0.3% this year, against the ECB's previous prediction of zero.

Earlier on Wednesday, official data had indicated signs of improvement in the eurozone's jobs market.

The ECB considers that inflation will stay low in the coming months, as a result of lower oil prices, but will climb by the end of the year.

Earlier on Wednesday, Paris-based research body OECD said the eurozone will start to perk up, the New York Times reports, growing 1.4 percent in 2015 and 2.1 percent in 2016, after a 0.9 percent expansion in 2014. The monetary easing programme by the European Central Bank as one factor behind the increase, according to the report.

The institution warned, however, that high unemployment would continue to weigh on the 19-member bloc’s prospects, with only a gradual decline, to around 10 percent, by the end of 2016.