The ECB is likely to keep a dovish tone but is not expected to take action this week. The central bank President Draghi is expected to argue that the measures undertaken in the past will be successful and will lead to a rebound in the outlook of core inflation. However, the ECB is expected to take a modest action in March. Meanwhile, flash PMI for euro area is likely to verify the strength seen in the final release of December, whereas the ZEW is likely to have adverse effects from market correction.


Bank of Japan Governor Signals Gradual Progress Toward 2% Inflation Target
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Paraguay Central Bank Holds Interest Rate at 5.5% Amid Slowing Growth
J.P. Morgan Now Expects Two ECB Rate Hikes Amid Inflation Pressures
China Holds Benchmark Loan Prime Rate Steady for Tenth Consecutive Month
Fed Holds Rates Steady as Middle East Conflict Clouds Inflation Outlook




