Monday, Dec 24, 2007
ECB focus on inflation not credit crunch
FT: Trichet to focus on eurozone inflation
The ECB plan to hold EU interest rates at 4% to deter inflation and second round effects such as wage inflation. Also at their meeting on 6 Dec some members wanted to raise interest rates. Sounds like our Spanish holidays will get more expensive as sterling falls.
Posted by who stole my pension? @ 06:28 AM (292 views) Add Comment
2 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. cornishman said...
There is a school of thought that reckons the eurozone could be split apart by this. It would seem that some of the EU countries will not be able to cope with such 'high' interest rates and are contemplating abandoning the euro - preferring to join the race to the bottom with the dollar and sterling by creating a new currency. There would be all hell let loose if that happened. History tells us that a single currency without political union does not always work out well. For those looking to get out of depreciating sterling, think carefully about how safe a euro saving account would be...
2. planning4acrash said...
Yer, maybe they got the Euro the wrong way round. Should have completed the eastern europe expansion process, sealed the constitution and ironed out a few other things before going into monetary union. Afterall, one of the strengths of Europe has always been its diversity. The politician that pulls a country from the EU will be a very brave one and the ECB will do all it can to keep the country in a firm embrace, so I doubt any quick movement on that front. More than likely, individual countries get used to turbulance as seen in Ireland and Spain with the major booms. So long as political union grows and turbulance becomes a bit less painful, the better. No doubt, country banks are pleased to leave the ECB to injecting liquidity and taking that risk.