Thursday, June 6, 2013

ECB seen holding rates as it waits for signs of euro zone recovery

The European Central Bank is expected to keep its main interest rate at a record low 0.5 percent on Thursday but tweaks to its economic forecasts may give investors a steer on the future direction of policy.

The euro zone's central bank cut its main rate last month and signaled it was ready to do more should a recovery not materialize in the second half of the year as it expects.

With economic data improving in May, the ECB will probably want to save its last remaining policy firepower for a later date, while stressing it is not out of ammunition.