Popular News From Popular Sites: Investors' eyes pinned on ECB as Europe's health deteriorates

Sunday, August 31, 2014

Investors' eyes pinned on ECB as Europe's health deteriorates

ECB headquarters are pictured prior to the bank's monthly news conference in Frankfurt By Martin Santa BRUSSELS (Reuters) - The European Central Bank meeting on Thursday is the prime event for markets seeking clarity on the bank's response to a stalled recovery, disappearing inflation and the sluggish pace of reform in the euro zone. "Pressure for the ECB to do more has returned, not only because of weak output/inflation data, but mostly following (ECB's President Mario) Draghi's speech in Jackson Hole," said Frederik Ducrozet, senior euro zone economist at Credit Agricole. So the ECB may have to reach deeper into its policy toolbox, with some analysts even betting on an interest rate cut at the bank's meeting on Thursday. "We expect the ECB to cut all key interest rates by a further 10 basis points, thereby delivering a larger negative deposit rate (-0.20 pct) as well as a refi rate even closer to zero (0.05 pct)," Nomura wrote in its global market research.




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