On Thursday, March 8th, 2018, ECB Interest Rate Decision (12:45 GMT) and ECB Press Conference (13:30 GMT).

According to European Central Bank (ECB) chief, Mario Draghi, the Eurozone still requires significant monetary stimulus to help boost the stubborn sub-2% target inflation.

The consensus is that the ECB will maintain the status quo in interest rates and in the quantitative easing programme (bond purchases).

Previously, the bank was expected to change its forward guidance at its March meeting, but will it keep up with its plans?

What do you think?

Will the ECB signal the end of its monetary stimulus? Or will it delay the tapering and leave the euro weak?

What is the ECB Quantitative Easing Program?

The ECB’s quantitative easing programme was launched three years ago to fight off the threat of deflation (reduction of the general level of prices in an economy).

Its 2.55 trillion-euro bond buying spree has helped contain borrowing costs, spur spending, and generated investments to stimulate inflation.

Recently, ECB President Mario Draghi and the new ECB Vice President De Guindos indicated that the Central Bank is confident that inflation would eventually rise, but that further stimulus is still required, and interest rates should not be raised until after the end of the bond purchase programme.

The Central Bank believes that inflation is on an upward trend and the bond purchase programme should conclude by the end of 2018 (provided that inflation will continue towards the ECB’s 2% target).