The ECB meeting on Thursday follows last week’s pledge by Mario Draghi, ECB president, that the bank would do “whatever it takes” to safeguard the euro. Financial markets rallied immediately after the statement, but have since tempered some of that enthusiasm as expectations for action at this week’s meeting have receded.
Imminent action seems unlikely and, when asked about possible unconventional measures in the offing, he will probably remain vague and just repeat last week’s statements, believes that the ECB’s hands are tied and that it will look to the September meeting to cut interest rates further, along with measures to boost lending.
Germany's Merkel, Italy's Monti agree to do everything to protect eurozone; to meet next month
The German and Italian leaders have pledged to do everything to protect the eurozone, adding to a string of assurances over recent days that Europe is determined to get a grip on the continent's debt crisis _ but their governments again gave no details of any action.
Sunday's statement from Germany and Italy came before markets open for a week in which close attention will be focused on Thursday's meeting of the European Central Bank's policy-setting governing council. Last Thursday, ECB President Mario Draghi said the ECB would do "whatever it takes" to preserve the euro _ and markets surged on hopes of action.
Economists were waiting for the European Central Bank’s next policy meeting on August 2 to see if it announces concrete measures.
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