30th June 2011
The Financial Times (paywall) has reported that with inflation in the eurozone steady at 2.7 per cent in June, continuing pressure on prices was "likely to trigger a rise in eurozone interest rates next week".
Jean-Claude Trichet, head of the ECB, was speaking to the European parliament when he reiterated that the bank was "in a state of strong vigilance". According to the FT this a a phrase which habitually signals a quarter-point rate rise at the following ECB meeting.
Retail sales in Germany unexpectedly fell 2.8 per cent in May while France experienced a smaller fall of 0.8 per cent.
Why should this matter? More here…
Earlier this month, questions were raised about the solvency of the ECB.
To receive our free weekly email sign up here.