|Date / GMT||ACM||Consensus||Current Rate|
|04-02/19:45||European Central Bank (ECB)||1.00%||1.00%||1.50%|
The ECB is scheduled to meet this Thursday to discuss the monetary policy. Our desk expects the refi rate to be cut 50bps to 1.00%, which is consistent with the coordinated effort by central banks to reinvigorate the global economy. Despite a degree of resistance by members of the ECB to take the same level of aggressiveness in thwarting a deeper recession as their peers in the G10, an additional rate cut following this week's meeting cannot be ruled out. Investors will be listening intently for any commentary regarding an approach of quantitative easing by the ECB. The economic environment persists to be weak with growth being a key concern in the region. Eurozone industrial production declined 17.3% on an annual basis, which is one of several supporting factors to the current GDP being at a negative level of -1.3%. The ZEW confidence survey did come in much better than expected but also stands at a negative reading of -6.5%. German Finance Minister expressed his dismay with the current course of action to taken by some central banks of utilizing “debt-financed” programs to regenerate growth. This is a critical note, as Germany is intricate component of reaching stabilization in the financial crisis for the Eurozone.