Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Britain's Hyper Housing Market - 27th May 22
Lower Copper price due to Chinese lockdowns is only Temporary - 27th May 22
How the United States Conquered Inflation Following the Civil War - 27th May 22
Greater Depression Now!? - 27th May 22
Stocks: Is the Really Scary Part Just Ahead? - 27th May 22
The Dark Side of the Internet - Cybersecurity - 27th May 22
Why Ray Dalio is WRONG About China - Principles for Dealing with the Changing World Order - 24th May 22
Globalists Convene to Plan Central Bank Digital Currencies - 24th May 22
After Recent Highs, What’s Next for the Gold Junior Miners? - 24th May 22
Why APPLE Could CRASH the Stock Market! - 21st May 22
Why Is Crude Oil Ignoring US Inventories? - 21st May 22
Here is Why I’m Still Bullish on Gold Mining Stocks - 21st May 22
THE INFLATION MEGA-TREND QE4EVER! - 20th May 22
US Real Estate Investors – Is There An End In Sight? - 20th May 22
How Technology Affected the Gaming Industry - 20th May 22
How To Set And Achieve Reasonable Goals For Your Company - 20th May 22
How Low Could the Amazon (AMZN) Stock Price Fall? - 19th May 22
Bitten by FANG? Clocked by Cryptos? -- 'Air Pockets' Everywhere - 19th May 22
Northern General Hospital Orthopedics Fractures and and Ankle Clinic Consultations Real Patient Experience - 19th May 22
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

ECB raises interest rates to 3.5%, whilst the BOE keeps rates on hold at 5%

Interest-Rates / Strategic News Dec 07, 2006 - 10:46 AM GMT

By: Nadeem_Walayat

Interest-Rates

In widely expected interest rates moves, the European Central bank raised interest rates to 3.5% (a 5 year high) and the Bank of England kept rates on hold at 5%.

ECB raises interest rates to 3.5%, whilst the BOE keeps rates on hold at 5%


The ECB's rate rise to 3.5% marked the 6th rise since started tightening monetary policy last December, to keep rising inflation in check, which at 1.8% remains below the ECB target of 2%. Though inflation is expected to pick up as the euro zones growth rate rises to 2.7%. Further interest rates are expected during 2007, though of the the dollar and US economy continue to weaken then this would impact on eurozone growth and make future rate hikes more measured or may even result in a pause at current levels.

The BoE kept rates at 5%, the next move in interest rates is expected in Feb / March 07, with the inflation rate at 2.4% well ahead of the 2% target, and house prices continuing to accelerate, and wage growth also expected to rise in the new year pay deals, it is highly likely that the Bank will raise interest rates again in Feb or March 2007, despite signs of a slowing economy and the effects of the weakening dollar.

  Related Articles

Nov 10, 2006
UK Interest Rates set to rise to 5.25% by March 2007
Nov 07, 2006
UK Interest Rates could rise to 5.75% in 2007
Nov 05, 2006
UK Insolvency rise by 55% and on target to hit a record 100,000 for 2006 As interest rates are due to rise to 5% !
Oct 22, 2006
UK Interest Rates Forecast to rise much higher due to rising Inflation and high Money Supply Growth
OcT 17, 2006
UK Inflation rises to a 8 year high of 3.6% (RPI), whilst CPI dips to 2.4%
Oct 05, 2006
BOE Keeps Interest Rates on Hold Whilst the ECB raises to 3.25%
Sept 21, 2006
Interest rates likely to rise to 5% in November 06
August 12, 2006
Interest rate trend uptrend accelerates !
August 05, 2006
Surprise rise in UK Interest Rates to 4.75%
March 07, 2006
Interest Rates Correction is Over
Nov 14, 2005
UK Long-term Interest Rates Trend is still UP

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in