Belgium fuels possibility of rate hike

In a recent press conference, the ECB’s representative from Belgium hinted that the ECB is ready to raise interest rates for the second time in as many months. When questioned about current interest rate levels, he stressed that rates cannot remain low forever, much to the chagrin of many EU politicians, who want to be certain the EU economies are on solid footing before the cost of borrowing is increased. The Belgian representative also expressed his confidence in the recent performance of the EU economies, and stated that it was important that the EU continue to keep pace with inflation. Bloomberg News reports:

[His] remarks on interest rates and his upbeat assessment of the economic outlook helped push up the euro from a two-year low against the dollar.

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