ECB to cut rates or ease guidance by September - Reuters poll

Omkar Godbole FXStreet Contributor

By September, the European Central Bank (ECB) will pacify doves either by cutting its deposit rate or by pledging to keep the interest rates lower for longer, according to a majority of economists in a Reuters poll.

Over 80% of 45 economists said the central bank would either cut its deposit rate further and have a tiered system with conditions attached or tweak forward guidance by removing any reference to future rate hikes, while others expected the ECB to restart its quantitative easing program (QE).

Of those expecting easing, about one-third expect it to happen as early as next month and 80 percent forecasted to come before September.

ECB President Mario Draghi in a speech last Tuesday put rate cuts back on the table. The central bank last reduced the deposit rate to -0.4% and the refinancing rate to zero in March 2016.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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