“We see two interesting themes: the new set of European Central Bank macroeconomic forecasts, with the inflation trajectory looking a bit firmer; and the discussion about a potential reinstatement of the waiver on Greek bonds posted as collateral at the European Central Bank refinancing operations”, Valli said.
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Europe has been troubled with deflationary pressure, and the European Central Bank has launched a series of stimulus packages since mid-2014 in order to achieve its inflation target of “below, but close to two percent”.
“The successful conclusion of the Greek bailout review suggests that the European Central Bank will introduce a waiver and once more accept Greek government bonds as collateral for tender operations”, said Commerzbank’s Schubert.
The deposit rate was also held at minus 0.4%.
Mallinckrodt Public Limited Company (MNK) recently recorded 2.89 percent change and now at $65.19 is 28.07 percent away from its 52-week low and down -50.19 percent versus its peak.
Reuters cited four sources from the Organization of the Petroleum Exporting Countries as saying the industry group was likely to discuss an output ceiling at its meeting in Vienna on Thursday.
The ECB is holding steady just as the U.S. Federal Reserve seems to be moving close to a rate increase at its June meeting.
Economists argued that May’s reading stood weaker than expectations but forecast the inflation to climb over in the coming months unless oil prices drop back sharply. Plunging oil prices have been one factor, and their recent recovery may help inflation higher.
The ECB kept interest rates firmly on hold, as expected.
Inflation is still way too low, at minus 0.2 per cent, and unemployment is painfully high at 10.2 per cent.
The euro has found support this week even as data showed consumer prices failed to increase for a fourth consecutive month and manufacturing activity was near stagnation.
The ECB was scheduled to publish its latest staff economic projections, with analysts expecting it to upgrade the inflation forecast for the first time in a long time.
“Downside risks continue to relate to developments in the global economy, to the upcoming British referendum and to other geopolitical risks”.
“By September, we think that the central bank will feel enough pressure to confirm that quantitative easing will be extended beyond March 2017”, JPMorgan economist Greg Fuzesi said.
“From the supply perspective, in the first half of this year, we have seen a further downward revision to the 2016 outlook for non-OPEC supply”.
The ECB is already purchasing 80 billion euros ($89 billion) in government through at least March 2017 and some private-sector bonds in a program that began in March 2015.
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Draghi also said the bank had postponed a decision on whether to grant euro zone-member Greece, now in the throes of protracted negotiations with lenders over economic reforms, access to cheap money.
