Markets wait for ECB to lower rates

One out of three analysts believes that Mario Draghi is going to lower interest rates when the ECB meets on Thursday. The European Commission has revised its growth and inflation forecasts (higher growth, lower inflation) so that leaders can make informed decisions in Frankfurt. These leaders will attempt to mitigate the deflation that could undermine economic growth, especially with the rising threat in the Crimea.

But in order to boost credit, Draghi could go above and beyond by making term deposits (the reserve balances that companies hold at the central bank) have a negative interest rate. The governor has already warned that he could resort to less-orthodox methods to stimulate growth. And now is the time.