Little is expected from Thursday’s ECB announcement. Key interest rates are widely expected to be lowered over the course of the year but analysts see at most only a very slim chance of any move until there has been further evidence that underlying inflation is under control. Accordingly, the deposit rate (still the main benchmark rate due to the ongoing abundance of excess liquidity) is widely seen being left at the current 4.0 percent record high while the refi rate remains at 4.50 percent and the rate on the marginal lending facility at 4.75 percent. However, the overall policy stance will continue to be tightened ... (full story)