Wednesday, Jun 06, 2007
ECB jumps
BBC: ECB raises eurozone rates to 4%
The European Central Bank (ECB) has raised interest rates for the eurozone to 4% from 3.75%.
Posted by holding out @ 02:02 PM (150 views) Add Comment
18 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. confused76 said...
"The increase takes rates in the area to their highest level for six years and means they have doubled in 18 months"
but it is different here!!
2. Bunch92 said...
Well, no surprises here. We all knew.
3. Pr said...
BOE will need to respond with a raise to ensure that sterling doesn't leach to the Euro and loose value, to avoid higher cost imports fueling inflation. This is the bind you put yourself in if you let yourself have the worst inflation problem in the developed world.
4. confused76 said...
check at the link. latest consumer survey shows upbeat confidence. that, plus today;s decision by ECB, may make a IR rise tomorrow possible (... I am not saying likely but at least possible)
http://uk.reuters.com/article/domesticNews/idUKL0565651520070606
5. inbreda said...
Has George made his predictions public yet?
6. dohousescrashinthewoods said...
Spanish property is toast then.
I need a job somewhere in Europe.
Strikes me from this the ECB are actively working for a stable economy, low inflation and economic sustainability.
Unlike our corrupted monkey boy hand-sitting glove-puppets.
7. confused76 said...
And Irish property too..... toasted
8. sovietuk said...
There is no escape from the land of makebelieve, MPC .
9. mrmickey said...
I suppose the BOE could just let Sterling colapse paving the way for us to enter the Euro.
10. Pr said...
Yes, mrmickey. I have wondered this before. Brown's main involvement is definition of the bank's targets. Use of CPI is an explicit effort to synchronise with the Euro zone, because that is their preferred method. it will be interesting if a collapse is followed by calls to join the euro to save an ailing british economy. Quite peverse, given that the ECB has managed to focus on M3 growth and prevent inflation, but use of CPI gives a good cover for such a suicide mission.
11. Pr said...
Interesting that the last crash was blamed on the exchange rate mechanism, i.e. attempts to synchronise with the euro. Looks like history may repeat itself?
12. enuii said...
I've long suspected that the long term strategy was to wreck the UK economy in order to fulfil the champagne socialist dream of being fully european and to hell with the consequences for the hard working citizens of the UK.
13. doomwatch said...
enuii, think you'll find Maggie wrecked it, filling the coffers of her cronies with cheap floats and flogging off council houses.
I could go on, but it will just upset my afternoon.
14. tipping point said...
The pounds been pretty stable against the Euro recently and has gone up slightly this afternoon.
QED the market was unsuprised by the Euro rate rise and expects a similar rate rise in the pound on Thursday.
15. tipping point said...
Just noticed Brent Crude is up 1.7% today. Only the most brass necked of flunkies would risk not rising rates tomorrow.
16. harold said...
tipping point, I agree with your assessment; however, the BoE will panic at the markets today and hold tomorrow (IMHO). The £ will fall as the fx markets have placed heavy bets on a rise - how far the £ will fall will be interesting to see (may be as much as 1 to 2%).
17. Pr said...
It would be interesting if the BOE reads money markets wrongly and doesn't think that traders expect a rise, then get a shock fall in £ with a hold in interest rate rise, that would surely put a stick of dynamite under inflation and could result in a 0.5% rise the month after.
18. harold said...
Pr, the BoE knows that fx markets expects them to rise - the BoE will be adding up the gold ingots in the basement at the moment so as to be ready to buy lots of unwanted £s. Soros will have a short position, I guess.