No Major Changes Expected For ECB Today

The European Central Bank (ECB) is not expected to launch any “bazookas” at its December meeting, according to analysts, but it could resort to a different stimulatory weapon.

Pressure on the ECB to act when it meets in Frankfurt on Thursday eased following higher-than-expected inflation data last week, analysts said. The annual rate of HICP (Harmonised Index of Consumer Prices) inflation rose to 0.9 percent in November, from 0.7 percent the month below.

It comes after October’s surprisingly low data sparked concerns that the 17-country euro zone was heading for a period of deflation. It spurred the ECB to cut its refinancing rate to 0.25 percent from 0.50 percent at its November meeting.

CNBC

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