Forex Blog: Currency Trading News & Analysis.

October 6th 2005

ECB weighs growth and inflation

In a somewhat surprising move, the European Central Bank (ECB) has opted to hold its benchmark interest rate at 2%. The ECB has found itself in the precarious position of trying to reconcile the risks of inflation with prospects for growth in conducting its monetary policy. Due in part to rising fuel prices, Euro-area inflation has reached a 1-year high, at 2.5%. Meanwhile, growth prospects are also improving as domestic consumption and exports pick up. While a few prominent economists have called on the ECB to lower interest rates, the ECB rarely bows to external pressure. The Financial Times reports:

Although Jean-Claude Trichet was expected to take a more hawkish tone in the afternoon press conference, highlighting inflationary pressures, the threat of weakening growth remains and few analysts expect any upward move for rates until well into next year.

Read More: ECB keeps rates at 2% despite inflation risk

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Central Banks, Euro | 2 Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

2 Comments of “ECB weighs growth and inflation”

  1. gemx Says:

    Great blog..if you have the time, give me an e-mail. I’d like to hear your insights in the forex..also any recommendations for software..

  2. gemx Says:

    by the way…I can give you a free username and password to my site…you’d be helpful..

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.