The European Central Bank is likely to discuss a possible lowering of interest rates at its next meeting, German newspaper Handelsblatt reported today.
The newspaper said "well-informed sources" had confirmed Wednesday's report by Market News news agency, that said the March 4th meeting could be the first opportunity at which the ECB would seriously look into a possible monetary easing.
But the policy-setting council was far from unanimous over the need of lowering borrowing costs, the newspaper said although Germany's Bundesbank was receptive to the idea.
Handelsblatt also said its source confirmed another MNSI report that said the ECB now saw inflation averaging 1.5 per cent next year, down from 1.6 per cent forecast in December.
Market News reported on Thursday the ECB is set to lower its projections for euro zone inflation for this year and the next, which would give it more room for monetary manoeuvre.
The ECB declined to comment on the Handelsblatt story.