ECB Rate Cut Looking Possible Tomorrow

A cut in the ECB interest rate is possible tomorrow (Thursday).
A Reuters poll found 48 out of 71 analysts forecast  that the ECB  would  cut rates this week, most of them forecasting a 25 basis point cut to 0.75 %. This would be a new all time low.

Slower German  inflation in June  will have increased the chances of  a further cut in eurozone interest rates.

IMF Managing Director Christine Lagarde  does not agree with a cuts – she said while the ECB has room to ease monetary policy, the IMF does not believe a cut it is the best policy given that not all euro zone members need lower interest rates at this time.

We will know the outcome tomorrow lunchtime.