Have we really finished? Five market questions before the European Central Bank

By yoruk bani and stefano Ribaudo

LONDON/Milan (Reuters) -The European Central Bank is scheduled to maintain fixed interest rates to attend a second consecutive meeting on Thursday, as investors monitor any hints that the bank is being cut off.

The charity tone of European Central Bank President Christine Lagarde in July managed to increase market expectations for more moves. A commercial agreement for the United States and the European Union followed and the economy, so Frankfurt has no great need to work now.

“At the present time, they are very comfortable to stay in its position,” said Jay Miller, the market’s market -chief market strategy in Zurich.

Here are five main questions for the markets:

1/ What will the European Central Bank do on Thursday?

Leave its main average waiting by 2 %.

Inflation was slightly higher than expected since the last meeting and growth in the first quarter of the European Central Bank’s double expectations, while the commercial deal with the United States reduced uncertainty. So policymakers do not have a little reason to reduce rates now or indicate the next.

“They wanted to be deliberately unaware of future interest rate decisions. So in general, this is what we will get,” said Simon Wales, the European chief economist at HSBC.

2/ Does the European Union’s commercial deal changed economic expectations?

At first glance, not much.

Lagarde says that the 15 % customs tariff deal is not far from expecting the foundation line of the European Central Bank by 10 %.

Some economists warn that the tariff that struck the economy is still unconfirmed and will be increasingly feeding in the coming months. More escalation is also a danger.

“I will be more important or skeptical in the deal more than he will likely be at his meeting at his meeting,” said the president of Injo Carsten Barzky, the kidney president, Carsten Barzky, President of Injo Carkens Barski.

3/ Have European papers be implemented to reduce this session?

Not necessarily. Many policy makers did not rule out another step and the European Central Bank is divided as inflation would lead to a decrease or higher than expected.

Reuters economists believe that the European Central Bank has ended. Traders see about 70 % opportunity to reduce one, but only by next summer.

Those who think that the European Central Bank has ended saying that Lagarde has put a high tape for more moves and expectations need to deteriorate to justify one. Some expect the German catalyst to rise.

But the greatest growth is expected to grow from customs tariffs, stress in the bond market, and reduce US prices, pushing the euro to the top and inflation is less than the reasons that it can resume, others say. The European Central Bank sees a low low inflation than its goal next year.

The updated economic expectations of the central bank are also in focus. Economists are widely expecting slight promotions to 2025 growth and inflation expectations, but they are more divided next year.