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By Sakari Suoninen

buy canada goose jacket FRANKFURT, Dec 6 (Reuters) The European Central Bank is likely to keep interest rates on canada goose uk shop hold Canada Goose Jackets on Thursday but may offer clues on its policy path for next year with updated forecasts likely to present a grim outlook for the euro zone economy in 2013. buy canada goose jacket

canada goose clearance sale Since unveiling a new bond buying plan in September, the ECB has held off further action until the programme is activated. Canada Goose Outlet That wait looks set to continue as Spain resists pressure to request a bailout a uk canada goose outlet precondition for the ECB to buy its bonds. canada goose clearance sale

Instead, markets may focus on new ECB economic forecasts for hints on the course of monetary policy. The bank is cheap canada goose uk sure to cut its growth outlook for this year and next as the euro zone crisis has hurt the economy to its core, including Germany.

The policymaking Governing Council meeting began shortly after 0800 GMT.

canada goose coats on sale With market interest rates varying greatly across the 17 country bloc, the ECB is focused on fixing what it calls the mechanism for passing on its rates before contemplating lowering official borrowing costs, already at a record low level of 0.75 percent. canada goose coats on sale

buy canada goose jacket cheap do not expect any change in rates, Danske Bank analyst Anders Moller uk canada goose Lumholtz said. buy canada goose jacket cheap

expect a very calm meeting. Draghi has been pointing recently to improvements in market sentiment, and canada goose clearance sale it our expectation that he will do it also in Thursday meeting.

Only a handful of the 71 economists polled by Reuters said the ECB would trim canada goose coats its main rate to 0.5 percent from 0.75 percent.

They were split down the middle Canada Goose sale over the possibility of a cut early next year, however, putting the focus back on the ECB new economic canada goose projections.

canada goose disappointing macro data and the ECB poised to lower its growth forecasts, the prospect of a further reduction in the refi rate at Canada Goose Coats On Sale least is back in the cards for next year, Investec economist Philip Shaw said. canada goose

Canada Goose Parka Business surveys showed canada goose factory sale on Wednesday the euro zone canada goose coats on sale economic slump was a little less pronounced in November than previously thought, although there are few signs the region will emerge from recession any time soon. Canada Goose Parka

canada goose coats The unemployment rate rose to record high 11.7 percent in October, with the southern European countries suffering most. canada goose coats

canada goose clearance The canada goose clearance quarterly update of staff projections will reflect the woes, with economists expecting a downgrade to growth forecasts while the inflation outlook will remain largely the same. canada goose clearance

canada goose deals In September, the projections pointed to gross domestic product (GDP) growing about 0.5 percent in 2013 after a slight contraction this year. canada goose deals

cheap Canada Goose The split in rate expectations shows that ECB watchers have a tougher time deciphering ECB President Mario Draghi language than that of his predecessor, Jean Claude Trichet, who used coded canada goose uk black friday language to flag rate moves often months in advance. cheap Canada Goose

Canada Goose online in terms of canada goose black friday sale communication, Draghi has thrown away the codebook, Shaw said. Canada Goose online

canada goose store REACHING LIMITS Governing Council member Canada Goose Parka Erkki Liikanen said last week the ECB has already done a lot to soften the blow from the euro zone debt crisis. canada goose store

The central bank is pressing the bloc Canada Goose Online governments to act now and is wary of taking any action that could see them soft pedal budget consolidation efforts.

This puts the onus on Spain to canadian goose jacket prompt fresh ECB action Madrid must turn to its European partners and ask for a full bailout, on top of the aid granted to its banking sector, before the ECB can intervene and buy Spanish sovereign debt.

Canada Goose Jackets The ECB has not yet bought canada goose uk outlet any sovereign debt under its new bond buy programme dubbed Outright Monetary Transactions (OMT) but by saying it could buy unlimited amounts of government bonds it has calmed markets. Canada Goose Jackets

Canada Goose Outlet Spain auctioned fewer bonds than it hoped to on Wednesday, prompting markets to ditch the country debt as investors fret over the timing of an expected aid request by the government. Canada Goose Outlet

canadian goose jacket However, yields fell from previous sales, reflecting a recent rally in prices since Draghi unveiled the bond plan. canadian goose jacket

With Spain borrowing costs at a manageable level, the wait will continue as long as markets trust the ECB to buy canada goose jacket cheap intervene forcefully when the time comes, with its credibility reducing its need to act.

this stage, it doesn seem canada goose store that Spain is very focused on asking for this assistance. There has been tightening in peripheral yields based on the Chuck Norris effect, Danske Bank Lumholtz said, referring to the impact of the threat of cheap Canada Goose ECB action. central bank has been very clear that they are willing to engage Canada Goose online in bond purchases.

As banks are still wary of lending to each other, the ECB is universally buy canada goose jacket expected to extend its policy of offering banks unlimited amounts of cash in all its refinancing operations.

It started the policy in 2008, after the Lehman Brothers collapse, and has continued it ever since, with no end to it in sight.