June 5 Seen As Stepping Stone to ECB QE

        10:56 EDT - Policy researchers at Cornerstone Macro see the ECB this Thursday cutting each of its policy rates by 10 bps to 15 bps, alongside some sort of measure to encourage credit flow to households and small businesses. But firm adds it sees a higher probability the ECB disappoints than surprises markets with aggressive action, such as outright bond purchases. Still, actions taken Thursday likely tap the ECB's conventional toolbox, which means focus then shifts to QE. "Because low inflation and deflation risk are deeply entrenched in the EZ economy...the probability that the ECB will have to do more down the road increases, and more at this point means QE." (cynthia.lin@wsj.com; @cynthialin_dj)
        (END) Dow Jones Newswires

        June 03, 2014 10:56 ET (14:56 GMT)