ECB seen holding rates as it waits for signs of euro zone recovery
They will not change rates. That would be too much for ECB to change rates again in such a short time
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The European Central Bank is expected to keep its main interest rate at a record low 0.5 percent on Thursday but tweaks to its economic forecasts may give investors a steer on the future direction of policy.
The euro zone's central bank cut its main rate last month and signalled it was ready to do more should a recovery not materialise in the second half of the year as it expects.
With economic data improving in May, the ECB will probably want to save its last remaining policy firepower for a later date, while stressing it is not out of ammunition.
This may include action to boost lending to smaller firms in the euro zone periphery, although plans to do so are unlikely to have been finalised.
"We won't see any changes on the policy rates," ABN Amro economist Nick Kounis said. "If data were to disappoint going forward, then a refi rate cut becomes an option."
The ECB will release its latest set of staff projections after Thursday's Governing Council meeting, which began at 0700 GMT.
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