ECBThe 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.

In-Depth Analysis

Related 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