At a press conference later on Thursday, ECB President Mario Draghi is expected to drive home once again his case for ultra-loose monetary policy amid mounting criticism from Germany.
Last week, German finance minister Wolfgang Schäuble warned that the ECB`s policy was causing "extraordinary" problems for Germany and was in part to blame for the rise of the right-wing anti-immigration Alternative for Germany (AfD) party.
On Wednesday, Schäuble stuck to his tough stance, saying that "a long period with zero and negative interest rates is not a sensible situation".
The ECB has been easing policy aggressively, cutting rates deeper into negative territory and expanding asset buys in a bid to prop up inflation, which now stands at zero - far off its two percent target.
Negative rates are hurting Germany`s fragmented and cash-saturated banking system disproportionately, raising the prospect that hundreds of smaller banks, primarily small savings banks, could become unviable.
IMF figures suggest German and Portuguese banks will take the biggest earnings hit from falling interest rates, compressing margins and possibly thwarting lending growth.
Draghi is likely to reject the German criticism, outlining an even darker path for growth and inflation if the ECB slows the flood of cheap money and arguing that the bank makes policy for a 19-member bloc, not just one of its members.
The ECB President may also stress that the central bank will want to see how the two stimulus packages announced since December play out before unveiling any new measures.
In addition, Draghi is set to give investors more information about the ECB`s latest plan to buy corporate bonds.
