The ECB is widely expected to deliver a well-flagged status quo at next week’s policy meeting leaving its key policy rates unchanged, at 0.75% for the Refi and 0% for the deposit rate. Austrian governor Ewald Nowotny provided the most explicit signal by saying last week that there was “no need to change policy rates in the near or medium term”. Moreover, several Governing Council members have repeated their opposition to any form of direct or indirect ECB participation in potential Greek debt restructuring or re-profiling of any kind. Finally, in the absence of clear progress on the Spanish front, the ECB is very ... (full story)