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Central Banks: ECB

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Preview of Jul 3 Meeting

Wed, Jul 2 2008, 14:26 GMT
by Marina Schiaffino

FXstreet.com

The ECB is expected to raise its main interest rate by 25 basis points for the first time since June 2007 in order to dampen inflation in the Euro Area, which is growing at levels well above the upper limit of ECB’s margin for price stability.

Jean Claude Trichet, president of the European Central Bank, has affirmed that the bank would monitor carefully all developments and act in a "firm and timely manner," with inflation in the Euro Area growing at a 4.0% year on year pace, and producer prices rising 7.1% in the last 12 months to May, the decision of the ECB seems very likely to be a 25 basis points rate hike.

Check the effect that the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. And remember that you can attend to our special live coverage: "ECB and Non-Farm Payrolls Live Coverage with Sunil Mangwani and Valeria Bednarik" on Thursday July 3, at 11:15 GMT, both from FXstreet.com home or from the proper event in the Economic Calendar.

• · ECB homepage
  
  

In-Depth Analysis

• · ECB: Preview of July 3 meeting by Danske Bank A/S
• · Daily Forex News - Forex - Dollar fell in volatile market ahead of ECB rate outlook by ACM - Advanced Currency Markets
• · EUR/USD Briefing - Euro to Raise Interest Rates? by Nexum Capital Markets
• · Daily FX Report - Market wants Central Bankers comments by Varengold Wertpapierhandelsbank AG
• · Currency and Stock Markets Weekly Outlook - U.S unemployment and ECB's decision by X-Trade Brokers, XTB
• · Forex Trading Strategies - Busy, US-holiday shortened week ahead with US ISM, US Employment Report and ECB Rate Decision by Saxo Bank
• · Weekly Review and Outlook - An Important Week Ahead with ECB and Non-Farm Payroll by ActionForex.com
• · Friday Notes - The ECB's hike experiment by HVB Group
  
  

Related News

• · The ECB will, most likely, raise rates to 4.25% tomorrow (FXstreet.com)
• · Euro continues to edge higher ahead of ECB rate decision Thursday (Thomson Financial News)
• · Dollar steadies after fall vs euro, ECB awaited (Thomson Financial News)
• · Dollar drops on record oil prices, ECB rate hike expectations (Thomson Financial News)
  
  

Analysts' comments

• · Mitul Kotecha, head of global foreign exchange research at Calyon
  "A thin data calendar is in store today as the market gears up to tomorrow's (Thursday's) ECB rate announcement and US non-farm payrolls." - AFP
• · Martin van Vliet, economist at ING
  "The euro-zone May producer price figures further cement expectations of a 25-basis-point rate rise at Thursday's ECB meeting and will provide the hardliners on the ECB's Governing Council with fresh ammunition to argue the case for continued hawkish rhetoric at the subsequent news conference." - Dow Jones
  
  

Published on  Wed, Jul 2 2008, 14:39 GMT