Jul 4
ECB preview: No rate cuts despite inflation at 0%
We expect the ECB to keep the refinancing rate unchanged at 1.0%. The governing council seems reluctant to go below 1% even with inflation at 0% and falling. We expect the policy rates to be kept unchanged for the next 12 months. ECB staff growth projections will be revised down to slightly below -4% for 2009, but might be revised slightly up for 2010. Inflation projections are likely to be almost unchanged, although a slight upward revision in 2010 is a possibility. The focus will be on the
