ECB Rate announcement 12:45 GMT/ Press conference 13:30 GMT 06/02/2014

February 6, 2014 by Nanakiver3

The ECB (European Central Bank) announces its rates today.

It could be interesting as many analysts are split on whether the ECB will cut rates this week or keep them unchanged.

The reason some are saying it will be a close call is because of the recent Eurozone Inflation print of 0.7% vs expectations of 0.9% y/y.  A handful of the major banks are expecting a rate cut today as the ECB makes a move to fight the spectre of deflation.  The majority of major banks are expecting an unchanged decision though and instead looking for the press conference for guidance on a possible rate cut in the next few months.  The majority feel that the ECB will wait to see how inflation comes out in March to see whether the recent inflation print was a one-off or part of a downward trend.

Inflation is a major concern at the moment and one of the specific circumstances Draghi mentioned that could force the ECB’s hand. ¬†Todays conference will most likely concentrate on the remaining tools at the disposal of the ECB, particular attention will be on the potential for QE.

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View the release live on our members area economic calendar.

Came in as expected, unchanged. Now waiting for the press conference.  Watch it live here