Thursday, February 7, 2008

European Central Bank seeks to bring surging inflation back within its target range

Eurozone interest rates left unchanged

Eurozone interest rates have been left unchanged by the European Central Bank as it seeks to bring surging inflation back within its target range.The decision to leave its main policy rate at 4 per cent was widely-expected after eurozone inflation last month hit a 14-year high of 3.2 per cent. The ECB’s concerns that a temporary rise in price pressures could become longer-lasting are thought to have outweighed fears about growth. The ECB’s stance has contrasted sharply with the aggressive interest rate cuts announced by the US Federal Reserve.

Posted by jack c @ 02:52 PM (470 views)
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One thought on “European Central Bank seeks to bring surging inflation back within its target range

  • It will be interesting to see what happens in Europe. I imagine the Italians and Spanish and Irish are getting quite agitated.

    I don’t see how keeping interest rates ‘high’ in Europe will affect the local prices of oil or wheat – which is being driven by a world market. Unless you use the argument that if Europe is absolutely crippled then you could reduce world demand enough to bring down the cost of oil etc.

    Glad it’s not my problem to solve.

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