ECB hints at rate rise amid inflation fears

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Series Details 4.3.11
Publication Date 04/03/2011
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Report of the monetary policy decision taken by the European Central Bank on the 3 March 2011.

The ECB’s decision to keep the main policy rate at 1% for the 22nd consecutive month was widely expected. However, the tough stance on inflation taken by Jean-Claude Trichet, ECB President, at his subsequent press conference sent markets into a frenzy of activity.

Analysts said that the European Central Bank was indicating an interest rate rise was imminent after warning that eurozone inflation warranted 'strong vigilance' - a term it used in the past shortly before raising rates.

The ECB’s decision to keep its main policy rate at 1 per cent for the 22nd consecutive month was widely expected. However, the tough stance on inflation taken by Jean-Claude Trichet, ECB president, at his subsequent press conference sent markets into a frenzy of activity.

Related Links
BBC News, 3.3.11: Eurozone interest rates could rise in April, ECB says http://www.bbc.co.uk/news/business-12635877

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