4th March 2011
The European Central Bank has surprised markets by signalling a rate rise as soon as next month, brushing aside warnings that this may compound damage from the oil shock and push EMU debtor states deeper into crisis.
badnewz (bardle) says: "since when have central banks actually done what they say they will? trichet in particular likes to play around with the markets – the rates will not go up, as it will break apart the banking system"
praxis22 comments: "I used to like that program. However, given that when interest rates go up, bond prices go down, with the commensurate effect on the yield, I think it's madness.