ECB likely to leave interest rate unchanged at 0.5%
The European Central Bank is unlikely to cut interest rates this afternoon.
Economists say the bank's 23-member governing council are expected to leave the benchmark lending rate at a record low of 0.5% when they meet in Frankfurt later.
There are hopes that the recession in the Eurozone could be bottoming out, supporting the ECB's expectations of a recovery later this year.
Davy Chief Economist, Conall MacCoille, says the ECB could come in for some criticism for not doing enough to boost the European economy if that recovery does not materialise.
There had been some talk of stimulate new markets … to sort of help bank lending in the periphery," he explained.
"nothing has come of that - that's gone on the backburner.
"Hopefully the recovery is coming along, but if it doesn't and the European economy flattens off again in the second half of the year, I think people will be saying we should have done more."
