ECB makes no secret of interest-raising intentions

The ECB's governing council has made no secret of its intention to raise interest rates when it meet...

The ECB's governing council has made no secret of its intention to raise interest rates when it meets early next month. It has been busy telling the market to expect at least another quarter-point increase from the current 3.25% and rates could easily go up again early next year. Just because it seems inevitable does not mean it is the right thing to do. While the ECB is talking tough on rates, the euro-area economy is showing signs of slowing. The ECB needs to demonstrate that it has the flexibility to respond quickly to changing economic circumstances. Otherwise there will be a questio...