ANALYST VIEWS: WHAT CENTRAL BANK DECISIONS DO YOU EXPECT?

 
Tim Wallace
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LUIGI SPERANZA | BNP PARIBAS
“Despite Eurozone inflation rising sharply from 2.5 per cent to 3 per cent we remain of the opinion that the ECB will act boldly in the meeting this week. We expect a 25 basis point rate cut, the announcement of a 12-month LTRO and possibly a new covered bond purchase programme.”

CHRIS WILLIAMSON | MARKIT
“Ben Bernanke is to speak before a bipartisan congressional panel on the US economy tomorrow. His words will be watched closely as investors mull over the odds of another round of QE from the Fed. Unemployment figures have been weak and anaemic growth is insufficient to prevent those rising.”

ALEX LAWSON | MONEYCORP
“The pound will come under pressure in the build up to the MPC decision with scope for a bounce if no more QE is announced. There has been speculation that the ECB will cut interest rates by 0.5 per cent to 1 per cent, although their preoccupation with inflation will probably stay their hand for now.”