Author (Person) | Münchau, Wolfgang |
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Series Title | Financial Times |
Series Details | 7.3.11 |
Publication Date | 07/03/2011 |
Content Type | News |
Wolfgang Munchau writes about the European Central Bank‘s latest announcement, in which the institution announce a certain rate increase. In his opinion, this declaration is a political one. If you take your inflation target seriously and literally, as the European Central Bank does, the decision to pre-announce an almost-certain rate increase is internally consistent. I had expected the ECB to raise its short-term refinance rate in June, but it is now aiming for April. This two-month gap has nothing to do with unexpected price developments. The decision to jump early is political. I am offering three reasons, and one speculation. |
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Countries / Regions | Europe |