Monday, Jun 05, 2006

Interest rates

The Times: ECB may raise interest rates to 3%

THE European Central Bank (ECB) could raise interest rates by more than expected this week as it seeks to respond to the threat of rising inflation and to strong growth prospects in the eurozone. After sustained rises in commodity prices, some economists believe that the ECB will raise its rates by a half-point to 3 per cent. The general view has been that rates will rise by a more modest quarter-point. The Bank of England, whose Monetary Policy Committee (MPC) also meets this week, looks set to keep UK rates unchanged.

Posted by jason @ 07:38 AM (547 views)
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2 Comments

1. Babblesky said...

ECB will not go 50, unless they are a group of real idiots. Oh wait, never mind, scratch my prediction.

Monday, June 5, 2006 11:52AM Report Comment
 

2. Gregzki said...

Although the MPC should raise rates at the next meeting by at least a quarter of a point, proactively, as seen in the US, I feel that they are hoping that poeples expectations of a rate rise will be enough to curb inflationary pressure until the data for a rate rise is unquestionable, which will by then be too little to late. I think they will be held back by fear of pushing indebted individuals over the edge - worrying at 4.5%

Monday, June 5, 2006 12:14PM Report Comment
 

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