1 Aug 2013
Flash: ECB may cut rates and Draghitalk should tilt dovishly - RBS
FXstreet.com (Barcelona) - Greg Gibs, FX Strategist at RBS notes that virtually no economist is predicting a policy rate cut by the ECB at their meeting tonight, and it seems few anticipate much change from the previous statement on 4 July.
Key Quotes
!However, the risk is that they either cut the policy rate (currently 0.5%) and/or further enhance their forward guidance statement.”
“RBS Economics agrees no change, but thinks the decision goes down to the wire, with some members expected to favour a cut. They see more chance that the policy rate is cut than the guidance further enhanced, but both are likely to be discussed.”
Key Quotes
!However, the risk is that they either cut the policy rate (currently 0.5%) and/or further enhance their forward guidance statement.”
“RBS Economics agrees no change, but thinks the decision goes down to the wire, with some members expected to favour a cut. They see more chance that the policy rate is cut than the guidance further enhanced, but both are likely to be discussed.”