ECB: announcements about its monetary policy.

This Thursday the European Central Bank will make statements about the monetary policy that they will implement and above all, they will report on the interest rate. At 9.30am (GMT-3) Christine Lagarde will speak after releasing the data and will report on the current state of the economy of the bloc that leads the ECB to make the decision.

The current interest rate is 0.00% and has been in place for months. It is expected to remain unchanged. These speculations do not apply to the bond purchase policy.

The interest rate, according to the current monetary policy of the ECB, is maintained until inflation manages to stay close to 2%. The latest published data on inflation in the euro zone is 1.3%.

The bond purchase policy has been promoted and sustained by the Bank to keep the economy stable. As the economy was affected by the current pandemic, bond purchases increased. Given that economic results have evolved positively in recent months, a decline in bond purchase policy is not ruled out.

One of the key factors that they are expected to mention is the economic recovery of the bloc, which will be an indicator for the coming months and the possible decisions that the ECB will take. This economic recovery is accompanied by the advancement of vaccination programs and the advance of COVID-19 infections. Some regions of some countries have begun gradual de-confinement while other areas remain more rigid. This raises global concerns about consumption and the economic effects that are spreading.

An increase in the purchase of bonds could reflect an increase in the weakness of the euro against other crosses, but on the other hand, a modification in the position of the entity, towards a less moderate stance may show better expectations of the entity.

The EURUSD closed buy at 1.202. For the third consecutive day, the crossing remains among its maximums.