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Ecb Signals Rates On Hold, Nervous About Economy

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The European Central Bank signalled on Thursday that its interest rate rise cycle had been halted, saying euro zone inflation risks were no longer skewed to the upside and economic growth would be slow at best.

"We expect the euro area economy to grow moderately, subject to particularly high uncertainty and intensified downside risks," President Jean-Claude Trichet told a news conference after the ECB left rates at 1.5 percent, following hikes in April and June.

Inflation should fall below 2 percent in 2012, Trichet said, and price risks were "broadly balanced."

That assessment marked a change from last month, when he said there were "upside risks to price stability." The change in the ECB's inflation view suggests it has abandoned its policy tightening course and that interest rates are now on hold.


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Zerohedge claiming he's has an on air meltdown, can't view the vid to verify if it's true.

Now on Bloomberg too: Trichet Loses Cool on Deutsche Mark Question

Trichet, 68, today lost his cool with a reporter who asked whether Germany should abandon the euro and return to the mark as Europe’s debt crisis roils markets and spooks voters.

“I would like very much to hear the congratulations for an institution which has delivered price stability in Germany for almost 13 years,”

Just in case anyone was wondering whose interest the ECB actually looks after...

Compare and contrast with Greece (and all the other PIIGS for that matter).

The impact of the new currency was not the same in all member states. One example is Greece, where the adoption of the euro led to significant price hikes, as consumers were inexperienced and ill-informed to deal with the transition from the drachma. The price of goods that cost 100 drachmas (or 0.29 euros) was “rounded” up to 1 euro. Therefore, despite the fact that the rate had been officially set at 340.75 drachmas per euro, the transition on the domestic market was at 100 drachmas per euro. That was tantamount to a de facto unofficial revaluation of the drachma by 240 percent.

Price stability my @rse, you fekking moron <_<

Edited by Deckard
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Compare and contrast with Greece (and all the other PIIGS for that matter).

Price stability my @rse

This was much the experience in the Eastern European peripherals - when pegged. There was fairly zonking inflation. Huge price hikes in gas and diesel, formerly cheaply sourced from Russia, obviously.

As for 'rounding up', of course it happens. Some people here may be old enough to remember the same effect here under decimalisation.

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As for 'rounding up', of course it happens.

More than doubling prices is a fair bit more than just rounding up, don't you think?

And it was the same in Italy: official exchange rate 1927.36 Lira for one Euro

Pre-Euro price: 1,000 Lira

Post Euro price: 1 Euro

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  • 429 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
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      • up 5%

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