Jerry Jackson

European Economics Preview: ECB Set To Hold Interest Rates

In Economics, World News on February 4, 2011 at 4:36 am

via Flickr”]The powerful European Central Bank [ E C B ] i...

Interest rate decision from the European Central Bank and retail sales and service sector PMI figures from the eurozone are due on Thursday, headlining a busy day for European economic news. All times in ET. Major economic reports released on Wednesday were mostly negative. Eurozone producer price inflation sped up in December, while Standard & Poor’s cut the Irish Republic‘s credit rating. Elsewhere, the UK’s construction sector rebounded in January. At 2:00 am, French economy minister Christine Lagarde is due to hold a news conference on France’s G20 agenda. The Irish Republic’s services PMI index for January is due at the same time from Markit. At 2:15 am, Switzerland is scheduled to release trade balance data for December. A trade surplus of 1.8 billion francs was recorded in the prior month. Consumer and producer price inflation figures for January are due from Turkey at 3:00 am. The annual rate of inflation in consumer prices is predicted to ease to 4.6% from 6.4% in the previous month. At 3:15 am, Spanish services PMI data for January is due from Markit.French services PMI for January is due at 3:50 am, with economists predicting the preliminary score of 57.1 to be retained. At 3:55 am, German services PMI for January is out, with the flash estimate of 60.0 expected to be confirmed. Eurozone services PMI for January follows at 4:00 am, with the preliminary reading of 55.2 expected to be left unrevised. The composite PMI is also forecast to be unrevised from its preliminary estimate of 56.3. At 4:30 am, the January services PMI for the UK is due. Economists expect the index to rise to 51.3 from 49.7 in December. Spain is scheduled to hold an auction to sell two- and five-year bonds around the same time, through which it hopes to raise upto 4 billion euros. At 5:00 am, Eurostat is due to release eurozone retail sales figures for December. Sales are forecast to rise by 0.5% on a monthly basis and by 0.2% on an annual basis. Romania’s central bank is due to announce its interest rate decision simultaneously. Economists expect the base rate to be kept unchanged at 6.25%. At 7:00 am, the Czech central bank is due to announce its rate decision, with analysts expecting the repo rate to be retained at 0.75%. The ECB announces its rate decision at 7:45 am. No change is expected to the key rate of 1%, despite inflation jumping past the bank’s target. ECB President Jean-Claude Trichet holds a press conference following the interest rate announcement at 8:30 am. Read more here.



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