The European Central Bank will lower its growth forecasts for the euro area at its last policy meeting of the year, but also argue that cutting rates is not the appropriate response yet, analysts predict.

With ECB interest rates already at record lows and its latest anti-crisis weapon ready and primed for action, central bank chief Mario Draghi will insist once again that the ball is in the court of the governments to find a way out of the long- running crisis, economists said.

Draghi said as much in a French radio interview on Friday.

“We will succeed on condition that governments act,” he told Europe 1 radio.

“We will do what is needed, and we are ready to intervene again if it is necessary... even to an unlimited extent”.

But it was essential that governments get their economies and finances in order, Draghi said.

“The ECB perceives its job—both on conventional and unconventional policy—as just about done,” said UniCredit chief eurozone economist Marco Valli.

Market tensions have indeed eased since the ECB unveiled its anti-crisis bazooka in September, the so-called OMT bond-purchase programme.

The scheme is credited with marking a turning point in financial market sentiment towards the crisis-wracked euro even though it has not actually been used.

News: The Daily Sun/Bangladesh/3rd-Dec-12