Community Views : What’s on the boards today….4th March 2011

4th March 2011

The Telegraph

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"

FT Alphaville have reported this as well:

"Trichet calls for a ‘quantum leap' amid 'strong vigilance'"

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.

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