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ECB Expected to Raise Interest Rates This Week
The European Central Bank is facing a true dilemma with its upcoming interest rate vote. On the one hand, the Bank is cognizant of the rising rate of inflation in certain economies comprising the 17-member Eurozone of countries, while on the other, it is aware of the pressures the so-called “periphery” nations face as they deal with the ongoing credit crisis. For ECB President Jean-Claude Trichet and the governing council which votes on interest rate actions, the task before them is straight-forward enough – implement an interest rate policy that meets the needs of the Eurozone. The trick however, is ... (full story)