In the first half of 2011, the policy rates by the European Central Bank (ECB) is not estimated to rise. This signaled the head of the Austrian National Bank and ECB council member Ewald Nowotny. Although the rate of inflation in the euro area +2.2 Percentage has lain in December 2010, the monetary authorities do not seem to expect a further significant increase in the first two quarter of 2011.
expressed a similar way before, the President of the German Bundesbank, Axel Weber. In the medium term he expected the increase in consumer prices below two percent. The ECB defines price stability in the euro area with an inflation rate of just below two percent. If this goal seems threatened by excessive inflation, the central bank usually provides for an increased policy rates.
The Governing key rate is at 1.00 percent since May 2009. In the course of the financial and economic crisis reduced The European Central Bank, the important key interest rate to -3.25 percent. By early October 2008 the prime interest rate had stood at 4.25 percent. The last rate increase was in July 2008 came about when the ECB had raised its discount rate from 4.00 percent to 4.25 percent.
forced just three months later, the financial crisis, the central bank into a swirling. Policy rates had to be reduced in order to cushion the impact of the global economic crisis. In addition, during the financial crisis threatened to drying out of the money markets. Banks lost confidence in the wake of the collapse of Lehman Brothers and gave hardly any money to each other.
Meanwhile the economy in the euro zone again recovered significantly. To avoid a new bubble in the financial markets, the European Central Bank (ECB) raising interest rates sooner or later development. The current level at 1.00 percent in the case of a permanent solution would entail considerable political stability risks.
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