ECB decision the focus of attention this week in light of the continued low inflation

The European Central Bank's decision to lead the economic calendar this week, in light of speculation that tends to provide a new monetary tools to counter potential risks of deflation.

Earlier this month, it was expected that the bank is moving to the announcement of the new monetary tools, but that the bank surprised markets, not to provide anything and continued emphasis on the adoption of expansionary policies for an extended period of time.

However, in the previous week and with continued low inflation, has said Mario Draghi - World Bank President - that the Bank prepares for a new monetary tools to counter deflation risks.

The ECB kept its benchmark interest rate at 0.25% at a meeting this month and confirmed to keep interest rates at current levels or below for a period of time in light of the adoption of expansionary policies as long as necessary. It is expected to keep its benchmark interest rate unchanged at a meeting next month.

Draghi said that recent rises witnessed the exchange rate of the euro and the orientation of monetary policy Almstqlbe of Almtafrd to lower the exchange rate, this at a time when the region is witnessing the decline of inflation to low levels for a long period of time.

Draghi said that the reasons for the stability of inflation in the euro area is the high euro exchange rate since mid-2012 until now. With that the Bank may intervene if inflation continues to decline to lower than expected. Especially as inflation falls within the Bank's assessment of the level of security for price stability and the target bank president.

In February and inflation continued to fall away from the security level of price stability (2%), to hit 0.7% from 0.8%.
It is expected this week to announce the preliminary expectations for consumer prices for the annual March / March and is expected to fall to 0.6%.
While the Bank in a recent report predicted that inflation will be at 1.0% in 2014 and 1.3% in 2015 and extends to 1.5% in 2016.

Among the tools that may be used to heading the bank is to impose a negative interest rate on deposits, worth mentioning that the head of the German central bank said earlier in this regard and expressed that it would rein in rising euro.
Bank to raise growth forecast for 2014 to 1.2% from 1.1% the previous forecast in December and 1.5% in 2015 and expand to 1.8% in 2016.