Thursday, December 01, 2005

Interest rates rise in Euroland

Last month, Jean Claude Trichet , European Central Bank President, warned the FOREX markets that the ECB would raise interest rates after a long hiatus of five years to preempt incipient inflationary pressures. His comment strengthened the euro, but very briefly.

The ECB announced a 0.25% increase to its benchmark rate to 2.25 percent today.

Recent blogs on same topic here

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