(RTTNews) - Thursday, the Governing Council of the European Central Bank or ECB is set to announce its interest rate decision at 7.45am ET. Most economists are expecting the central bank to leave rates unchanged this time, although economic indicators point downward.

The ECB has brought its interest rate down to 2% after cutting 50 basis points in January. At its meeting held in Frankfurt, the Governing Council had left its interest rate on the marginal lending facility unchanged at 3%, while the interest rate on the deposit facility was lowered to 1%.

The central bank had said in a statement that these decisions are in accordance with the Governing Council’s decision on 18 December 2008 to restore the width of the corridor of standing facility rates around the interest rate on the main refinancing operation to 200 basis points.

The ECB President Jean-Claude Trichet is expected to hold his regular post-decision press conference at 8.30am ET. In January, Trichet had said February meeting is not an important rendezvous for policy making and the next major decision will come in March.

Analysts expect the key interest rate to reach 1% in the coming months. Christoph Weil, an analyst at Commerzbank had said falling inflation in Eurozone gives the European Central Bank greater scope to act. In January, annual inflation slowed on falling energy prices to 1.1%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Economy, Eurozone, Releases.

Subscribe by RSS Subscribe by Email