ECB won't cut deposit rate in December: traders

(Reuters) - The European Central Bank will not cut its deposit rate further into negative territory at its December monetary policy meeting, according to the vast majority of traders polled by Reuters on Monday.

With the euro weakening on expectations the U.S. Federal Reserve will hike rates in December, 18 of 21 respondents said the ECB would not cut the deposit rate to try to boost inflation, something its President Mario Draghi said it was prepared to do.

"I expect the euro dollar to continue to weaken on the back of a hawkish Federal Reserve," said a trader at a big bank. "I do think that they (ECB) might do something on the quantitative easing side."

Since March, the ECB has injected 60 billion euros a month of new money through a bond-buying scheme to support growth and inflation, and a Reuters poll late last month found it was almost certain to increase or extend the program in December. [ECB/INT]

Monday's poll also found the ECB is expected to lend banks 60.0 billion euros at its weekly refinancing operation, slightly less than the 61.468 billion euros maturing from last week.

ECB WEBSITE

(Reporting By Krishna Eluri, Polling by Deepti Govindl; editing by John Stonestreet)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• S&P 500, Nasdaq futures tick up as tech steadies, Micron earnings eyed
• Nearly half of Fed policymakers see a 2026 rate hike in the cards
• Fed's rate-hike fears meet Iran peace dividend in global bond split