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ECB to hold fire on rates but could move soon: analysts

Published on May 8, 2014 10:09 AM

BRUSSELS (AFP) - The European Central Bank (ECB) will keep its gunpowder dry at its monthly meeting Thursday, but could pave the way to act soon if deflationary dangers persist, analysts said.

ECB watchers are not expecting any further reduction in eurozone borrowing costs, which have been held at an all-time low of 0.25 per cent since November.

"We expect no ECB action tomorrow," said Berenberg Bank economist Christian Schulz.

The ECB's decision-making governing council is meeting in Brussels, instead of its usual venue of Frankfurt.

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