Eurasia: Don’t Expect ECB to Take Action When it Meets Thursday

Eurasia Group’s Europe Practice Head Mujtaba Rahman says that while pressure may be building on the ECB to take action to stimulate the flailing European economy, the bank will likely not detail what it plans to do at its meeting on Thursday January 22nd. Rather, it will say that it intends to act and hold off on providing details of its plan until its March meeting. Rahmann said, ‘The reason between announcement and unpacking the substance is to let the electoral context in Greece play out through the month of February because we know there is the chance that a left-leaning Syriza administration...There will also be data releases in March.’ But, while more data points in February and March around inflation and growth expectations will give the ECB a better sense of the state of the European economy, any action on the central bank’s part will need the support of Germany. TheStreet’s Ruben Ramirez has details.