Major central banks on both sides of the Atlantic are under pressure to ease monetary policy in order to prevent inflation expectations from plunging at a time of slowing global growth, rising protectionism and weak economic data.
Asked what action the ECB might take at its July meeting, two-thirds of analysts said the ECB would adjust its forward-looking guidelines to make them more relaxed.
Given that inflation is still far below the central bank's target level and is not expected to accelerate soon, the ECB is expected to cut deposit rates by 10 basis points to a record low of negative 0.50% in September.
"We do not think this is enough to boost inflation to its target level. Ten basis points of interest rate adjustment will obviously not really solve the problem, "said Andrew Kenningham, chief European economist at Kaishou Macro.
"But the board will want to imply that they can do more. This may have an impact on the monetary environment. But I don't think that's enough.
Indeed, a Reuters survey of more than 100 analysts on July 4-17 showed that the outlook for economic growth and inflation in the euro zone -- and most of the region's major economies -- remained unchanged at best, or declined.
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