European Economic News Preview: ECB Monetary Policy Announcement Due

European Economic News Preview: ECB Monetary Policy Announcement Due

May 10, 2023

The European Central Bank is set to announce its monetary policy decision on Thursday after the US Federal Reserve lifted its interest rates by another quarter point.

The ECB is also widely seen raising the key refi rate by 25 basis points as inflation is expected to remain high for too long. The announcement is due at 8.15 am ET.

ECB President Christine Lagarde is set to hold press conference at 8.45 am ET.

Foreign trade from Germany and final composite Purchasing Managers’ survey results from the euro area and the UK are other major economic reports due on the day.

At 2.00 am ET, Destatis releases Germany’s foreign trade data for March. Exports are forecast to fall 2.4 percent on month, reversing February’s 4.0 percent increase. Likewise, imports are seen falling 1.7 percent.

At 3.00 am ET, Spain’s unemployment data is due for April.

At 3.15 am ET, S&P Global is set to issue Spain’s services and composite PMI data. Economists forecast the PMI to rise to 59.9 in April from 59.4 in March.

At 3.45 am ET, PMI survey results are due from Italy. The services index is expected to advance to 56.5 in April from 55.7 in the previous month.

Thereafter, final PMI reports are due from France and Germany at 3.50 am and 3.55 am ET, respectively.

At 4.00 am ET, Eurozone final PMI survey data is due. The composite output index is forecast to rise to 54.4 in April, as estimated, from 53.7 in March.

In the meantime, Norway’s central bank announces its interest rate decision. The bank is likely to lift its key rate by 25 basis points to 3.25 percent.

Half an hour later, the Bank of England releases mortgage approvals for March and S&P Global publishes final PMI data. The UK mortgage approvals are forecast to rise to 46,250 in March from 43,540 in February.

At 5.00 am ET, Eurostat is set to publish euro area producer prices for March. Economists forecast producer price inflation to ease sharply to 5.9 percent from 13.2 percent in February.

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