InfoAnda - ECB shocks markets with signal of interest rate hike

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Simon Cowell gambling on Internet Vegas talent show | Entertainment | | 2 December 2009
Osteoporosis Drug Shown To Aid In Rotator Cuff Surgery Recovery | 11 March 2010
Foreign investors keep cool over Korea crisis | 24 November 2010

Fighting Afghan Taliban with Islamic credit unions | International | | 26 November 2009

Forum Views () Forum Replies ()

Read more with google mobile : ECB shocks markets with signal of interest rate hike

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Top Stories Most Popular Photos Full Coverage Sitemap ECB shocks markets with signal of interest rate hike AFP - Friday, March 4 Send IM Story Print ECB shocks markets with signal of interest rate hike FRANKFURT (AFP) - – The European Central Bank shocked financial markets Thursday by signalling an interest rate hike could come as soon as next month to keep inflation from spiraling out of control. "An interest rate increase in the next meeting is possible, it is not certain," ECB president Jean-Claude Trichet said after the bank's governing council left the rate at a record low of 1.0 percent. "This is about as clear a signal of rate hike that you are going to see from a central banker," ABN Amro economist Nick Kounis commented. The rate dropped to 1.0 percent in May 2009, but inflationary pressures have now prompted ECB policymakers to demonstrate their determination to keep price increases close to their target of just below 2.0 percent. Eurozone inflation hit 2.4 percent in February and will likely rise further owing to economic growth and surging oil prices fueled by increased demand and unrest in North Africa and the Middle East. "Strong vigilance is warranted with a view to containing upside risks to price stability," said Trichet, using a code phrase that has in the past indicated a rate hike in the month to come. The euro surged close to $1.40 following Trichet's comments, hitting a level it hasn't seen since November last year. Trichet nonetheless indicated the increase would not be the first in a series, and suggested it would not be large, probably on the order of 0.25 percentage points. RBS economists Jacques Cailloux and Nick Matthews commented that they would "not rule out an extra hike between April and September" however. Trichet also presented new ECB staff forecasts for eurozone inflation and growth that indicated increases in both. Midpoints in ranges calculated by bank staff put inflation at 2.3 percent this year and 1.7 percent in 2012, up from their previous outlook of 1.8 and 1.5 percent respectively. Data used in their calculations was collected before recent events in Libya however, which have pushed oil prices even higher and might make the new 2011 inflation forecast too conservative. Growth is now tipped at 1.7 percent this year and 1.8 percent in 2012, up from 1.4 and 1.7 percent. Meanwhile, the ECB will maintain its flow of cash to commercial banks at fixed rates with a decision to provide as much as banks ask for in loans through July 12. That is good news for so-called "addicted" banks in countries like Greece and Ireland that have come to depend on central bank funds. The ECB intends to wind down exceptional measures taken to battle the global economic and financial crisis at some point, but Trichet stressed again the "separation principle" between liquidity measures and interest rate policy. Barclays Capital economist Julian Callow said that "the ECB is preparing to raise rates too early. It should give the euro area economy more chance to get on sustainable footing." Ernst and Young counterpart Marie Diron agreed, saying: "We think that any premature rate increase as a response to energy-fuelled inflation would be a policy mistake." But the ECB is used to rowing against the current, having raised its main lending rate in July 2008 just as the 17-nation eurozone was heading into a recession. UniCredit's chief eurozone economist Marco Valli said: "Todays shock announcement should be seen as a pre-emptive move aimed at anchoring inflation expectations and sweeping away any doubt that the ECB takes its mandate of price stability very seriously." Recommend Send IM Story Print News Search Top Stories World's sixth mass extinction may be underway: study World can handle choked oil supplies: Geithner Mubarak ally quits as Egyptian PM Young Mexican female police chief seeks US asylum Germany probes 'terror' attack at airport More Top Stories » ADVERTISEMENT Most Popular Most Viewed World's sixth mass extinction may be underway: study Young Mexican female police chief seeks US asylum On the nose: Sharks are stunning navigators Two US airmen shot dead at German airport Libya live report More Most Viewed » More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2011 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Friday, 4 March 2011
Libya live report
Demjanjuk trial to run until mid-May: German court
Japan arrests tech-savvy university exam cheat
Shi'ites stage small protest in Saudi oil province
Libya live report
Libya government accepts Chavez mediation plan: Venezuela |
US jobless claims drop near three year low
Beijing to trial mobile tracking system: report
Libya jets hit rebel town, crimes against humanity probed
Japan develops mobile phone with human touch
Egypt's PM quits as army seen responding to demands
Pressure relieved as Tunisia refugee airlift kicks in |
Twitter's Stone: no IPO or funding talks
Suicide bomber kills 10, wounds 26 in Iraq-sources
Iraq PM demands Kurdish forces leave disputed city |
Iranian navy ships enter Egypt's Suez Canal
Ivorian forces kill 7, post-election toll hits 365 |
Afghan president warns Obama about civilian deaths
China tightens reporting noose on foreign media
Shi'ites stage small protest in Saudi oil province |
Only 6 percent in China happy, survey finds
US-ENTERTAINMENT Summary
Obama, O'Reilly raise $750,000 in unlikely pairing
U.S. judge refuses to halt new healthcare law
Spielberg studio buys rights to WikiLeaks book: paper
Indonesians shopping less but spending more money
Saudi hardliners disrupt book fair: witnesses
Microfinance guru challenges dismissal from bank
RPT-IMF says may cut New Zealand 2011 growth forecast
Carnival kicks off in Brazil
DreamWorks options movie rights to WikiLeaks books |
Pakistani stocks end up; rupee flat; o/n rates down
Indonesian teenager arrested for condom possession
Turkish police slammed for fining beer drinkers
Texas man charged with illegal sports event streaming |
Pakistan's forex reserves fall to $17.50 bln
Zac Posen woos the 'voracious' woman at Paris shows
Indonesian AGO throws support behind local Ahmadiyah bans
Timeline: Apple milestones and product launches |
Shinsegae to bid for top Korea logistics firm
Foreigners flock to India's world yoga capital
Cambodia says firms lining up to list on new bourse
Election campaign kicks off in Kazakhstan
US military struggles in campus battle
Moscow cancels long-running St Patrick's Day parade
Myanmar suspends rice exports to control price
DreamWorks options movie rights to WikiLeaks books |
TV show reveals Mike Tyson, pigeon racer |
Paula Abdul, Mariah Carey on Cowell's X Factor list |
Star Wars: Episode I goes 3D in 2012 |
Obama, O'Reilly raise $750,000 in unlikely pairing |
Mubarak ally quits as Egyptian PM
Rome priest sentenced to 15 years for paedophilia
South Korean websites targeted in cyber-attack
World's sixth mass extinction may be underway: study
Medvedev seeks inspiration from reform Tsar
US-TECH Summary
Women flee Sudan's contested Abyei, shots heard
No evidence yet of spying at Renault: French police
World can handle choked oil supplies: Geithner
Libyan rebels, Gaddafi forces battle for oil sites |
Microsoft's Bing launches deals feature
Mubarak ally quits as Egyptian PM
Nintendo has high hopes for 3DS
China defense budget to stir regional disquiet |
Young Mexican female police chief seeks US asylum
U.S. contractor to go on trial in Cuba |
Germany probes 'terror' attack at airport
Nintendo's 3DS contains Toshiba, Fujitsu chips: iFixit
In Kadhafi, web finds a tragi-comic anti-hero
ECB shocks markets with signal of interest rate hike
Hundreds of thousands of downloads for The Daily
Women flee Sudan's contested Abyei, shots heard: U.N |
Microsoft adds local bargains to Bing results
Tunisia interim president calls July 24 election |
Surgeon creates new kidney on TED stage
Haitian candidate wary of Aristide's planned return |
Obama calls on Kadhafi to step down
Search for bodies slows in New Zealand quake
Japan PM Kan says won't call snap election |
Marvell warns of mobile revenue drop, shares dive
Kevin Spacey, David Fincher build 'House of Cards'
Obama says Libya stalemate a danger
SKorea waiting for North to pick up 27 citizens
Harry Potter London studio tour opens in 2012
US believes missing ex-FBI Levinson agent alive
Dozens of South Korean websites attacked
Marvell quarterly results below estimates
China reports rise in foreign students
Pentagon monitoring Libyan use of air power
China to boost defense spending by 12.7 percent
American faces trial in Cuba on spy charges
Impasse over Bamiyan buddhas, 10 years on
Weather forecast for the Asia-Pacific region
French street artist JR launches global project
China to boost defense spending by 12.7 pct
Kevin Spacey, David Fincher build 'House of Cards'
China to boost defense spending by 12.7 percent
Nintendo has high hopes for 3DS |
Johnny Depp cartoon set to animate box office
Vietnam protests Chinese military drills
Nintendo's 3DS contains Toshiba, Fujitsu chips: iFixit |
Sheen's legal case against studios not so crazy
Company: Dozens of South Korean websites attacked
Courtney Love to pay $430,000 in Twitter case
Microsoft's Bing launches deals feature |
Harry Potter London studio tour opens in 2012
Sony says PS3s seized in Netherlands in LG dispute |
Facebook valued at $65 billion in new investment |
NY Armory Show showcases world art
Seoul shares gain 1.7 pct on foreign buying, banks
Cuban National Ballet dancers won't leave Canada
POSCO, Lotte, CJ vie for $1.5 bln Korea Express stake
Interview: Doximity gains fans ahead of official launch |
Seoul shares gain 1.7 pct on foreign buying, banks
Courtney Love to pay $430,000 in Twitter case |
Lotte unit to invest $400 mln in Pakistan plant
NZ new car registrations falls in Feb
Taiwan heads toward sweeping property tax
Sheen's legal case against studios not so crazy |
Harry Potter London studio tour opens in 2012 |
Johnny Depp cartoon set to animate box office |
TV show reveals Mike Tyson, pigeon racer |
Elizabeth Hurley to appear in Wonder Woman pilot |
Courtney Love to pay $430,000 in Twitter case |
Kevin Spacey, David Fincher build 'House of Cards' |
Libya: live report
Britain's Labour wins by-election, LibDems routed
Apple's Jobs wants iPhone for China Mobile
Libya: live report
Gaddafi forces try to retake rebel town near Tripoli |
Spanish economy in 'slow recovery'
Thousands of Iraqis defy curbs to protest
Sony says PS3s seized in Netherlands in LG dispute
Yemen rallies grow, Saleh rejects transition plan |
British advertiser WPP profits soar in 2010
Germany says shooting of U.S. airmen a solo act |
Several hurt as Sunnis, Shi'ites clash in Bahrain |
Sony says PS3s seized in Netherlands in LG dispute
U.N. boosts peacekeepers in Sudan's Abyei flashpoint
EU concerned at detention of Turkish journalists
Grief-stricken Pakistani Christians bury slain minister |
Marines await Taliban move in deadly Afghan valley
EU exec closes antitrust probe into Hollywood studios
Egypt new PM in Tahrir Square, seeks legitimacy |
Another Indonesian province outlaws religious sect
Hundreds of Jordanians protest and urge reforms |
Bomb explodes in mosque in Pakistan; 9 killed
Irish coalition talks may miss weekend deadline |
China defence budget to stir regional disquiet
S Korean president calls for religious tolerance amid Islamic bonds row
Taiwan's Hon Hai is biggest winner with iPad 2 launch: analyst
Frankfurt attack was 'Afghanistan revenge'
Vietnam scrambles to save Hanoi's sacred turtle
Frankfurt attack was 'Afghanistan revenge'
Nepal's ex-rebels finally join new government
POSCO, CJ among bidders for Korea Express stake
Iditarod Race goes high tech with GPS devices |
Pakistani c.bank to buy govt paper in reverse repo
Brazil foreign chief discusses trade on China trip
Pakistan
Facebook valued at $65 billion in new investment |
Indian court drops bribery case against Italian
Foster design picked for $2.8B HK cultural hub
Apple's Jobs wants iPhone for China Mobile |
Britney's single leaks, some predict a club hit |
Dior hits the Paris catwalk without John Galliano |
Child star of Oscar-winning film faces deportation |
EU exec closes antitrust probe into Hollywood studios |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01