Beecroft: What the ECB should do, and probably won'tOwen Thomas
Despite worryingly low inflation, an uncomfortably high euro dollar rate and feeble growth, the ECB, which meets on Thursday, probably won't bow to the sort of pressures to which other central bank would yield. So says the Chairman of Saxo Capital Markets, Nick Beecroft. He says it's less than 50-50 they'll do anything, certainly this month.
The problem, says Nick, is that alternative forms of easing entail some drawbacks, either politically or in terms of their efficacy. While Monday's low 0.5% year-on-year CPI reading must surely have increased the chances of some stimulus, the ECB may easily choose to wait and see what happens in the coming months, both in the States and in Europe, and are likely just to label any surprising data points as transitory.