ECB

ECB RATE HIKE

The Sunday Times recently carried an article about the risk of recession in Spain should the ECB raise rates. According to the quoted economist, a rate rise would be a policy mistake that could push Spain back into recession.

Jean Claude Trichet, the president of the European Central Bank, has defended yesterday's 25 basis point hike in interest rates as good for the eurozone, as EU leaders prepare for talks on the bailout of Portugal.

ON BONDS

Expectations the Bank of England and European Central Bank will raise interest rates in the second quarter of 2011 have risen dramatically, a new survey of fund managers shows.

RATE HIKES IN EUROZONE COULD BE 'DISASTROUS'

ECB MOVE TOO PRE-EMPTIVE

Markets and the single currency reacted strongly yesterday after the European Central Bank hinted at raising interest rates as early as April.

European Central Bank president Jean-Claude Trichet has hinted interest rates may rise next month to fend off inflation pressures, reports Bloomberg.

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