Both banks are seen as holding rates at 4% for ECB and 5.25% for BoE.
The ECB will remain roughly neutral with a wait and see approach on Thursday. The ECB remains caught in a balancing act between dwindling growth prospects with downside risks and high inflation with upside risks, and fears of second-round effects. [Full report]
As usual, ECB’s president, Jean-Claude Trichet, will hold a press conference following the bank’s decision. More important than the decision itself will be what Trichet has to say regarding future monetary policy of the ECB.
The BoE is widely expected to hold rates at 5.25%, even more now that the Pound (GBP) edged higher on a weaker dollar.
Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.
In-Depth Analysis
- · Daily Forex Technical Report - Euro at Record Highs ahead of ECB, BOE by ActionForex.com
- · Daily Forex Outlook - ECB and BoE rate announcements today by Easy Forex
- · Flash Comment - ECB: Preview of meeting on 6 March by Danske Bank A/S
- · EUR/USD Briefing - ECB worried about expensive EURO by Nexum Capital Markets
- · Daily Market Briefing - Interest Rates: Where are they Headed? by FXCM
- · Currency and Stock Markets Weekly Outlook - "The week of central banks" by X-Trade Brokers, XTB
Related News
- · OUTLOOK BoE to keep interest rates on hold (Thomson Financial News)
- · Dollar flat in Asian afternoon trade ahead of ECB meeting (Thomson Financial News)
- · BoE to keep interest rates on hold in March (Thomson Financial News)
- · BoE dismisses rumours of emergency cash injection, emergency MPC meeting (Thomson Financial News)
- · BOE To Hold Rate Decision Meeting As Usual Next Week (Dow Jones)
Analysts' comments
- · James Hughes, analyst at CMC Markets:
"The next ECB rate verdict is due tomorrow (Thursday) and although consensus remains that we'll see no change, any suggestion as to where rates will go through the second quarter would give traders further direction to work on." - Houston Chronicle - · Michael Saunders, economist at Citigroup:
"A March rate cut [by the Bank of England] could have become a serious possibility if the services PMI had been very soft, but now even that possibility is gone. The Monetary Policy Committee remain likely to cut further this year, but we continue to expect that easing will be gradual rather than aggressive." - Financial Times
