European Economics Preview: ECB Likely To Cut Deposit Rate Further
The European Central Bank is set to announce its interest rate decision later today. The bank is expected to cut its deposit rate further into negative territory, while keeping the refi rate unchanged. Markets expect the bank to expand its quantitative easing.
At the press conference in Frankfurt, ECB Chief Mario Draghi is likely to adjust the asset purchase programme.
At 2.00 am ET, Destatis is slated to release German foreign trade figures for January. Exports are forecast to grow 0.8 percent month-on-month reversing a 1.4 percent fall in December.
In the meantime, Sweden's AMV jobless data for February is due.
At 2.45 am ET, the French statistical office Insee is set to publish industrial output for January. Output is expected to rise 0.8 percent month-on-month in January, reversing a 1.6 percent drop in December.
At 3.00 am ET, Spain INE releases retail sales for January. Sales are forecast to grow 3.1 percent year-on-year, faster than December's 2.2 percent increase.
In the meantime, Turkey's current account figures are due. The trade deficit is expected to narrow to $2.4 billion in January from $5.07 billion in December.
At 4.00 am ET, Statistics Norway publishes consumer and producer prices for February. Inflation is seen unchanged at 3 percent.
At 5.00 am ET, Greece consumer prices and unemployment figures are due. Consumer prices are forecast to drop 1.1 percent annually versus a 0.7 percent drop in January. The jobless rate is expected to remain unchanged at 24.6 percent in December.
At 6.00 am ET, Ireland's consumer prices are due. EU harmonized prices are forecast to drop 0.2 percent annually in February after staying flat in January.
At 7.45 am ET, the ECB is forecast to cut its deposit rate further to -0.40 percent from -0.30 percent. The refi rate is expected to be kept unchanged at 0.05 percent.
At the press conference, Draghi is expected to expand the quantitative easing programme.
The latest set of ECB Staff economic projections will also be unveiled today. The report is likely to reveal further downgrade to euro area inflation projections.
The material has been provided by InstaForex Company - www.instaforex.com
