Euro zone interest rate outlook

Earlier the economic condition in the euro area and free fall of oil market led the market to anticipate further deposit rate cut by Q4 2016. But after the January ECB meet, Market has changed its outlook and now focusing on the March meeting for the further hints on economic growth and interest rate. Majority analysts expect rate cut by April rather than March.  

European Central Bank chief Mario Draghi also admitted persistent low inflation rate reflects sizeable economic slack. The declining core inflation in the bloc called for further easing measures and Draghi is desperate to move inflation figures towards set target as soon as possible. 

Probably Draghi undertakes wait and See policy based on the economic situation and accordingly put more easing in to action.