The Governing Council of the European Central Bank (ECB) has decided to raise interest rates in the euro zone by a quarter point to 1.25%, after nearly two years lows as the market had already discounted after President Jean Claude Trichet, acknowledged one month ago that this increase was "possible".
With this decision, the types interest abandon its lowest level in history, where they stayed from May 2009 with the aim of supporting the recovery of the eurozone economy.
In the press conference following the Governing Council in March, Trichet surprised to recognize that a rate hike in April was "possible" but also stressed that this decision was not "safe" because the institution does not assume no prior commitment in monetary policy decisions.
However, in recent days, analysts considered that this rise was virtually assured and highlights that the market was already discounting will not be the last to be carried out before the end of 2011.
The euro zone inflation in March reached 2.6%, two tenths over the previous month's figure, according to early estimates from the European statistical office, Eurostat.
The European Central Bank in March revised upward its inflation expectations for this year and next as a result of rising energy prices and other commodities, which in the case of 2011 placed the range of inflation expectations institution between 2% and 2.6%.
0 comments:
Post a Comment