ECB is expected to take new stimulus steps
Most traders are concerned with the EU’s monetary policy. Financial markets are expecting another wave of stimulus from the major bank of Europe.
The key refinancing rate will most likely stay unchanged at its current level of 0.05%, though financial analysts see quite enormous potential for smart adjustments in other areas.
Some financial experts are assured that the ECB might get down to purchasing corporate bonds and this could have a huge impact on risky assets.
Meanwhile, February’s downbeat inflation data contributes to easing. Additionally, last month Eurostat reported that its flash February evaluation for headline consumer prices got back into deflation, showing a 0.2% dip. As for core inflation, it’s still positive, notwithstanding an annual rate sag from 1% to 0.7%.
Furthermore, the euro area’s economic trend is supposed to stay positive, though according to recent forecasts first-quarter GDP growth will probably fact deceleration compared to last year’s 0.3% surge.
Since January’s gathering of the ECB, the case for further stimulation appears to have drastically increased.