In the ‘ most important ‘ meetings week 17-member of the common currency, the currency of Jonathon Griggs CIO at JP Morgan Asset Management said the European Central Bank’s announcement will signal the bank confidence that a deal for the euro area fiscal will meet this week.
We had signs last week that the ECB is ready to intervene more but I think if it doesn’t cut prices would show a lack of confidence that the resolution of the fiscal will meet, ” said Griggs.
The Central Bank of the euro is unlikely to maintain loans cost at 1.25 per cent on Thursday when it votes on this month’s flower Griggs said.
‘ You almost can get rid of no change. The economic case is so important for a rate cut, ” said Griggs who said cutting 50 basis points is likely to 25 basis points would be ‘ the worst case scenario ‘.
‘ This is really the wrong time for retrenchment to countries such as Italy and Greece. We were in different economic environments for 2008. Now is the time for monetary easing. “