Might the European Central Bank spring another July surprise on markets? While the consensus among central bank watchers is that an interest rate cut is on the cards from the meeting of its governing council on Thursday, the ECB has form when it comes to defying expectations at this time of year.
Twelve months ago, and citing inflation risks, the bank pressed ahead with a rate rise, emphasising its divergence from the views of the US Federal Reserve and the Bank of England. In July 2008, between the crises at Bear Stearns and Lehman Brothers, the ECB was again trying to curb inflation when it raised interest rates to a seven-year high.
Full article: http://www.ft.com/cms/s/0/9744e31e-c5e7-11e1-b57e-00144feabdc0.html#ixzz1zg6kzGwF
Source: FT
Wed, 18:02 04-07-2012