Economics: ECB rate rise

A clear divergence between US and European interest rate cycles has become evident following the wid...

A clear divergence between US and European interest rate cycles has become evident following the widely anticipated 25 basis point rate rise by the European Central Bank (ECB) last week. The rise was the ECB’s second in the past three months. Paul Niven head of asset allocation at F&C Asset Management says this was of no surprise and had already been fully priced into markets. “The ECB’s inflation forecasts and credit growth, along with a brighter growth outlook for the euro area have led the bank to a more hawkish stance. While the economic recovery in Europe has improved, it remains fra...