With the ECB's rate announcement due in 1 and a half hour what are we expecting?
The economists are going for an unch scenario while the most "optmisitic" economist already hope for a rate cut as early as today.
Lets forget about the interest rates for a sec, as the whole interbank liquidity has dried up. European banks stalling over 150bn in overnight cash witht the Central Bank as nobody is willing to lend to each other. Look for extra liquidity measures in Trichet's speech this afternoon as well as an approval over the latest Italian austerity measures.
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