Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  December 07, 2012 15:38:53

The ECB left rates at rest yesterday, but most of the ECB board is tilted to reduce them

ECB at its meeting yesterday left interest rates unchanged. Announced but reduced forecasts of GDP and inflation for the years 2012-14.
According to several people close to the Bank Board, the majority of this body in favor of further reducing the main rate. That reduction occurred yesterday was reportedly due to concerns about the negative signals that this step could send in combination with reduced outlook GDP and inflation.

ECB board member Jozef Makuch said today in Bratislava that if there is no improvement in economic development and the chance of spontaneous improvement is but a very small, so it is likely that there will be a rate cut.
Their settings should act now at the January meeting.
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