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| ECB key rate 2006-2011. |
the policy rates of the European Central Bank (ECB) is at 1.00 percent since May 2009. Market observers expect an early increase the important key interest rate because of rising inflation. Lorenzo Bini Smaghi, member of the six-member leadership circle of the central bank has, indirectly, a rising policy rates in 2011 indicated.
together with the growing economic recovery, inflation pressure, Smaghi explained to the news agency Bloomberg. Therefore, monetary policy must be closely monitored and corrected if necessary. Rising commodity prices would have an unavoidable impact and be a great challenge for monetary policy. So-called second-round effects on consumer prices it was necessary to avoid.
likely still at 1 percent
Some economists with a increasing policy rates in the euro zone is already up to the summer of 2011. Consumer prices rose by 2.4 percent in January 2011 compared to the same month last year. This puts the inflation clearly above the ECB's target of two percent and threatens price stability. If inflation in the coming months does not develop again down so it is very probable that the policy rate is raised.
So created the European Central Bank (ECB) in its eleven-year history, a reputation for fighting inflation over the policy rates. The Central Bank increased its key interest rate itself in July 2008 from 4.00 percent to 4.25 percent, although the economic downturn at this point very clearly visible. However, threatened the exploding price of oil at 150 dollars the price stability of the euro zone.
The policy rates since 2006 shows an up and down in the important rate of the European Central Bank. Thus, the key rate was increased from 2.25 percent to 4.25 percent between February 2006 and July 2008. Then it came in the wake of the financial and economic crisis to a rapid reduction to 1.00 percent by May 2009. Since then, the ECB has not touched the federal funds rate.
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