New ECB head likely to favor rate cuts

New European Central Bank President Mario Draghi, who takes over from Jean-Claude Trichet on Monday, is expected to boost the bank's efforts to battle the eurozone's debt problem by cutting key refinancing rates in the next few months, analysts say. "We expect the ECB to cut key interest rates this Thursday or at the next meeting of the Governing Council in December 2011," VTB Capital analyst Alexey Moiseev said on Monday. The 17-country bloc's central bank increased its rates in July and April, when it became the first major central bank to raise interest rates after the intensification of the financial crisis. In September, the ECB kept the rate unchanged at 1.5 percent amid growing concerns over the eurozone's economic recovery. New European Central Bank President Mario Draghi, who takes over from Jean-Claude Trichet on Monday, is expected to boost the bank's efforts to battle the eurozone's debt problem by cutting key refinancing rates in the next few months, analysts say. "We expect the ECB to cut key interest rates this Thursday or at the next meeting of the Governing Council in December 2011," VTB Capital analyst Alexey Moiseev said on Monday. The 17-country bloc's central bank increased its rates in July and April, when it became the first major central bank to raise interest rates after the intensification of the financial crisis. In September, the ECB kept the rate unchanged at 1.5 percent amid growing concerns over the eurozone's economic recovery.