according To the forecasts of the economists expressed in a survey conducted by Bloomberg, the ECB is expected to report next month that it is prepared to lower his interest rate, to prepare the ground for a rate cut in September.
Remember that speculation about a rate cut from the ECB, are going since its president Mario Draghi said last week that additional stimulus measures will be needed if the outlook does not improve.
It indicated that the protracted uncertainty, due in large part to the trade tensions, means that the downside risks weighing on growth and inflation have now materialized.
In the Face of this position of the boss of the ECB, the economists polled by Bloomberg expect the deposit rate of the ECB was lowered to 0.5% in September, compared to -0.4% currently.
Most economists surveyed also said that the ECB will change its language in the statement which will be published following the meeting of the 25 July to reflect the probability of a near rate cut.
Note that the last statement of the ECB is merely trying to assert that rates will remain at current levels at least until the first half of 2020.
For the ECB that it aligns with the market’s expectations, hence it needs to quite clearly signal that a rate hike is imminent as soon as its next meeting.
