ECB rates on hold, but fresh monetary action could be in the pipeline

The European Central Bank is expected to leave interest rates on hold Thursday, but could signal plans for further monetary action in the coming months amid a sharp fall in oil prices and worries about global economic uncertainties.

Six weeks ago, ECB chief Mario Draghi unveiled a new package of monetary stimulus measures aimed at jump-starting inflation in the eurozone and firing up the 19-member currency bloc's economy.

But, since then, a renewed slide in oil prices and financial market turbulence unleashed by worries about China have raised doubts about the ECB's chances of reaching its 2-per-cent inflation target and building on the eurozone's recent modest economic performance.

Analysts expect that the ECB will announce Thursday that it will leave its benchmark refinancing rate on hold at 0.05 per cent.

Many analysts also believe that Draghi could hint at his press conference at further measures in the coming months, such as expanding the ECB's bond-buying programme or trimming interest rates again if both economic growth and inflation fall short of its forecasts.

Last update: Fri, 24/06/2016 - 08:49

More from Business

OPEC meets in Vienna to discuss possible freeze on production

Members of the Organization of Petroleum Exporting Countries (OPEC) met Friday in Vienna for talks about a possible...

HEP to supply electricity to Slovenian Railways

Croatia's national power provider Hrvatska Elektroprivreda (HEP) on Friday signed a EUR 26.5 million agreement with...

Djuro Djakovic Group cuts loss

Djuro Djakovic Group recorded a loss of HRK 10.4 million in the first nine months of 2016, cutting its loss by 74.4...

Ericsson Nikola Tesla sees sales revenues jump 17%

Telecommunications equipment manufacturer Ericsson Nikola Tesla generated sales revenues of HRK 1.3 billion in the...

Atlantic Grupa reports drop in sales revenues, increase in net profit

Atlantic Grupa earned HRK 3.78 billion in sales revenues in the first nine months of 2016, which was 4.9% less than...