The European Central Bank (ECB) is widely expected to cut interest rates by 25 basis points on Thursday, March 6, a move that markets have already fully anticipated. With the deposit rate set to drop to 2.5%, attention will turn to President Christine Lagarde’s stance on monetary policy—specifically, whether she continues to describe it as “restrictive.” Analysts believe she will maintain this characterization, but if she does not, it could lead to a more hawkish market reaction, prompting expectations of a slower easing cycle.
Earlier:
ING have provided a handy ‘cheat sheet’:
The Bank’s statement is expected at 1315 GMT / 0815 US Eastern time on Thursday.
European Central Bank President Lagarde’s press conference will follow a half hour later.