What Investors Need To Know Ahead Of ECB's Thursday Meeting

Investors are uncertain ahead of a Thursday meeting by the European Central Bank as the body ponders moves to strengthen a struggling Eurozone.

The bank is expected to reduce the interest rate on bank deposits from -0.3 percent to -0.8 percent, which might tempt banks to keep deposits in cash vaults.

Analysts expect the central bank to increase its 60 billion Euro monthly bond buyback program by around 10 billion Euros.

Some analysts and investors are uneasy about the potential of continued negative interest rates, and the Bank of International Settlements on Sunday said "there is great uncertainty about the behaviour of individuals and institutions if rates were to decline further into negative territory or remain negative for a prolonged period."

Negative interest rates in Japan preceded a period of market volatility. The BIS noted another potential downside of negative rates: "the debilitating impact of persistently negative interest rates on the profitability of the banking sector has emerged as an important consideration."

The BIS also wrote of "a growing perception in financial markets that central banks might be running out of effective policy options," and that central banks' task was "increasingly challenging" as the global financial marketplace resists their monetary policies.