News Analysis: Greater 2007 shortfall after European interest rate rise

The European interest rate rise will result in an even greater shortfall in 2007, according to Peter...

The European interest rate rise will result in an even greater shortfall in 2007, according to Peter Bickley, director of economics at Tilney Investment Management. The European Central Bank (ECB) raised rates on 6 October to a four-year high of 3.25% in an attempt to keep prices stable and reduce inflation risks. However, Bickley said that although the ECB fears higher inflation, he believes it is actually falling. “The best of Eurozone growth for 2006 is already over, while ECB concerns over higher energy prices are unfounded, as are fears that excessive money supply growth will fue...