Reasons Why ECB May Cut Rates

The European Central Bank meets Thursday facing the loudest calls to boost the economy since it last cut interest rates in November.

Last month, the ECB held rates at their record low of 0.25%. But President Mario Draghi warned then it was premature to declare victory in the eurozone crisis, and he promised to use all the tools at his disposal if necessary — a pledge he repeated 10 days ago.

Economists are divided over whether the ECB will go on the offensive Thursday. Some believe the bank is likely to wait for updated growth and inflation forecasts in March. Others say the time has come.


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