PARIS (AFX) - The European Central Bank will leave interest rates unchanged at its governing council meeting next Wednesday, but a further cut in rates is expected in the third quarter, according to a poll of economists by AFX News and Agence France-Presse.
Of 27 economists polled, all said they expect the minimum bid rate on the ECB's main refinancing operations to be left unchanged at 4.50 pct at next week's council meeting.
The ECB surprised markets by cutting the rate to 4.50 pct from 4.75 pct at its last meeting on May 10.
Economists expect the ECB to cut rates further over the remainder of the year, with most -- 17 of the 27 -- forecasting that the next easing move will come in the third quarter.
Five predicted that rates will be cut in June, while three said the ECB will ease in either June or July. One forecast a fourth quarter easing move and one said he expects no move over the next 12 months. Forecasts for the refi rate at the end of the year have been revised down slightly in the wake of the ECB's surprise move.
Of the 27 economists surveyed, 12 forecast an end-year rate of 4.00 pct and 12 predicted a rate of 4.25 pct. One predicted a rate of 3.75 pct, one of 4.50 pct and one offered no end-year forecast.