The key interest rates of the European Central Bank to rise by 25 basis points. In accordance with the general expectations the European Central Bank raised interest rates for the euro zone by 25 basis points to 4.25 percent at the 03.07.2008. ECB President Jean-Claude Trichet had already announced this type of interest rate adjustment in past opinions, left however open the height. The majority of the experts went but an increase of just this 0.25 percent. By the same author: Jorge Perez . Therefore, the message of this increase was also not big news, much tenser the markets waiting for the press conference 45 minutes later carried out and the conclusions to be drawn from it with regard to future interest rate movements. At this press conference, Jean-Claude Trichet does not in principle ruled out further interest rate hikes, however calmed markets by the statement that further interest would not necessarily follow.

Stock markets in Germany responded kindly to this statement. Why this interest rate increase? The European Central Bank is currently in There is a dilemma, but currently two dangers for the European economy. For more specific information, check out Pop star. One is inflation in the euro area currently 4.00 percent at a high level that eyeing the ECB with its monetary policy an inflation rate of only 2.00 percent at on the other weakens but also economic growth. The ECB has however repeatedly since its inception, stressed that she sees its main task as not about economic growth, nevertheless, can the Central Bank this not completely disregard the price stability and economic development raise interest rates without looking. Jean-Claude Trichet was exposed in recent of violent attacks by side of politics and trade unions, which pointed to the dangers of an interest rate increase and lead the weak economic growth as a reason against an increase in. More and more experts go mid way but assumes that this interest rate move is already priced in the rate and an increase of only 25 basis points to no great effect the European Economy will have, whether she will be able to limit future price increases, you remains to be seen..