By Mahmoud Gamal
Mubasher: The European Central Bank (ECB) is forecast to leave interest rates on hold when the council meets Thursday at its headquarters in Frankfurt, Germany, analysts told Mubasher.
ICM Capital's Director, Shoaib Abedi, said interest rates are likely to be left unchanged due to the decline in US dollar against a basket of currencies, which is likely to prompt the bank of Europe and Japan to adopt a devaluation policy soon.
Abedi expected the ECB to extend its current 80 billion euros ($90 billion) per month in bond purchases from banks and other financial institutions for 6 months.
Market analyst Mohamed Rayan said the ECB would not take further risks and actions regarding the zone’s interest rates in September due to the instable wave hitting the surrounding countries, including the political instability in Spain, concerns over US election, and the zone’s inflation rate.
Inflation rate reached 0.2% in August, far short for the ECB’s estimates of 2%.
