Will the ECB cut interest rates? Should it?
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  Will the ECB cut interest rates? Should it?		 « previous next »
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Question: Will the ECB cut interest rates?/Should it?
#1
Yes/Yes		  
#2
Yes/No		  
#3
No/No		  
#4
No/Yes		  
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Total Voters: 3

Author Topic: Will the ECB cut interest rates? Should it?  (Read 1074 times)
Bono
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« on: January 23, 2008, 02:20:48 PM »
What do you think?
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Silent Hunter
Junior Chimp
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« Reply #1 on: January 23, 2008, 02:42:07 PM »
What's the ECB? Spanish national bank?
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Bono
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« Reply #2 on: January 23, 2008, 02:59:19 PM »
Quote from: Ivan Smirnov on January 23, 2008, 02:42:07 PM
What's the ECB? Spanish national bank?

European Central Bank....
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Јas
Jas
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« Reply #3 on: January 24, 2008, 04:35:06 AM »
Voted No/No.

Based on Trichet's comments yesterday, I wouldn't expect a cut right now. Inflation is still higher than the ECB would like, and that being their major concern, I think they'll hold.

Whether or not they should cut rates, I'm not so sure. For the time being though, I think holding steady is probably the correct call.
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jmfcst
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« Reply #4 on: January 24, 2008, 04:40:20 PM »
Quote from: Jas on January 24, 2008, 04:35:06 AM
Voted No/No.

Based on Trichet's comments yesterday, I wouldn't expect a cut right now. Inflation is still higher than the ECB would like, and that being their major concern, I think they'll hold.

Whether or not they should cut rates, I'm not so sure. For the time being though, I think holding steady is probably the correct call.

yeah, core inflation is running at twice the rate in the EU than it is in the US.  The ECB is between a rock and a hard place.
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Storebought
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« Reply #5 on: January 24, 2008, 06:01:51 PM »
The ECB looks to be the sole major central bank not cutting its rates. I know Canada and the Bank of England have in addition to the Fed.

One the one hand, the Fed takes rate cutting far too vigorously. The old rate of 4.25% was historically the average rate of return of lent money. But on the other hand, I have the deep suspicion that the ECB is merely engaging in a currency war with the US and is using inflation as a pretext (not that inflation isn't a threat to every nation).
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Јas
Jas
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« Reply #6 on: January 25, 2008, 08:50:34 AM »
Quote from: Storebought on January 24, 2008, 06:01:51 PM
The ECB looks to be the sole major central bank not cutting its rates. I know Canada and the Bank of England have in addition to the Fed.

One the one hand, the Fed takes rate cutting far too vigorously. The old rate of 4.25% was historically the average rate of return of lent money. But on the other hand, I have the deep suspicion that the ECB is merely engaging in a currency war with the US and is using inflation as a pretext (not that inflation isn't a threat to every nation).

Since it came into existence the ECB's top prioirty has always been inflation targeting (taking over from exactly the same policy of the German Central Bank). Your theory that the ECB want a currency war is a fairly spurious one.
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