ECB Hikes!
Thursday July 3, 2008
The European Central Bank decided to hike rates at it’s July meeting as promised! The base interest rate on the Euro is moved from 4.0 percent to 4.25 percent. The initial Euro reaction was muted as the markets were holding their breath for the US nonfarm payroll numbers.
The ECB made the following statments about the rate decision:
The ECB made the following statments about the rate decision:
- Rate hike intended to counter inflation risk
- Eurozone growth moderating, but ongoing
- Eurozone inflation is “worrying”
- Medium Term inflation risk is to the upside
- Inflation expected to moderate in 2009
- The decision to hike rates was unanimous


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