Will the ECB cut rates on Thursday?

The European Central Bank (ECB) will announce its monthly decision on interest rates on Thursday, with opinion divided over whether it will cut rates in response to a sharp fall in inflation.

Last week's surprisingly low inflation data sparked concerns that the 17-country euro zone is heading for a period of deflation and boosted expectations of a near-team rate cut by the central bank when its governing council meets. Inflation fell to a near-four-year low of 0.7 percent in October.

(Read more: Pressure on ECB to cut rates)

Not everyone is expecting a dramatic move this month, although a number of banks including Societe Generale and BNP Paribas - said the inflation data boost the chances of a rate cut in December.