Here's another silly euro question
Article Abstract:
There is disagreement among economists as to whether interest rates will be raised by the European Central Bank (ECB). Inflation is low in countries taking part in European monetary union, and prices may be restrained by excess capacity, according to HSBC's Robert Prior-Wandesforde. Deutsche Bank's Ulrich Beckmann puts a greater stress on strong economic growth, and forecasts a rise in rates. A rise in rates may not have much of an impact on equity markets, or on the exchange rate for the euro.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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The elusive case for lower rates
Article Abstract:
There is a debate as to whether interest rates will be cut by the European Central Bank (ECB). Slow economic growth and low inflation favor a cut, but lower interest rates may not help ease unemployment if this is structural in nature. Unemployment has not affected consumer confidence, and wage inflation is forecast despite 10.6% unemployment. The euro currency is also weak, which could contribute to inflation. European interest rates may be cut, but a rate cut would not be totally beneficial.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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