The European Central Bank (ECB) is expected to announce a cut to interest rates in Europe later today (May 2nd).
It has been holding off a change to monetary policy for several months, but analysts are expecting the body to confirm a cut from 0.75 per cent to 0.5 per cent this afternoon.
Howard Archer, European economist at IHS Global Insight, stated that even if interest rates are held by the ECB today, this will only be "delaying the inevitable", as rates will have to come down.
A Reuters poll of 76 economists taken last week resulted in a slim majority forecasting a cut to interest rates, while ECB vice-president Vitor Constancio recently hinted this will be the course of action taken by the bank.
The decision on interest rates is set to be announced at 12:45 BST.
Teams from the European Commission, ECB and International Monetary Fund recently released a report predicting Greece's economy will return to growth in the near future.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.