IMF calls on ECB to refrain from further interest rate hikes

Bullseye1

Interesting that the IMF feel that interest rates would be damaging. Wonder if the ECB will take this advice on board or whether they will be spooked by the latest inflation figures.

http://news.eircom.net/breakingnews/19531387/?view=Standard

thebman

Inflation is at 2.3% in Germany according to google news. I think if it goes above 3%, the ECB will increase interest rates.

flutered

what suits germany suits the ecb.

tippx

flutered wrote: »

what suits germany suits the ecb.

Germany is the ECB,the IMF have always been more intrested in getting a country back on its feet and have plenty of experience in these matters be it good or bad, on the other the ECB, well what can you say Kick a dog when he,s down springs to mind

jimmycrackcorm

The ECB has traditionally been obsessed with inflation to the detriment of anything else.

View

jimmycrackcorm wrote: »

The ECB has traditionally been obsessed with inflation to the detriment of anything else.

They are legally required to be obsessed with it - that is, after all, what the member states put in the EU Treaties.

Sand

Yep, in fairness to the ECB, they have absolutely no option on the need to control inflation. The EU treaties specifically demand that they keep inflation near, but below 2%.

Of course, this was inserted at the insistence of Germany which greatly feared monetary policy being directed by feckless southern Europeans.

lmimmfn

Sand wrote: »

Yep, in fairness to the ECB, they have absolutely no option on the need to control inflation. The EU treaties specifically demand that they keep inflation near, but below 2%.

Well you have to give them credit, theyre loaning at 1.25% and trying to keep inflation below 2%, its bad business to be loaning at a rate less than inflation.