European Central Bank in dramatic move likely to increase benchmark interest rate to 4.25% in July; Economists’ forecasts vaporise
Jun 6th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
European Central Bank President Jean-Claude Trichet in a dramatic move on Thursday said that the ECB Governing Council is in a "a state of heightened alertness" because inflation is now expected to remain high for a more protracted period than previously thought and may raise its benchmark interest rate in July. The forecasts of rate cuts by some economists have proved to be wide of the mark.