FXstreet.com (Barcelona) - Attention has shifted to the ECB and BoE policy decisions. According to Mike Jones, currency analyst at Bank of New Zealand, he expects the BoE to lower its cash rate 25bps to 0.25% and increase asset purchases £50b to £375b, an outcome, "by no means fully priced by the market" he says.
On the ECB front, a form of easing is expected from the ECB, says Mike; "we expect ‘just’ a 25bps rate cut (taking the refi rate to 0.75%). But there is certainly a chance we get more aggressive measures. We suspect ECB easing would actually support the EUR (at least initially) as investors play up the ‘pro-growth’ implications."
On the ECB front, a form of easing is expected from the ECB, says Mike; "we expect ‘just’ a 25bps rate cut (taking the refi rate to 0.75%). But there is certainly a chance we get more aggressive measures. We suspect ECB easing would actually support the EUR (at least initially) as investors play up the ‘pro-growth’ implications."
