| Author (Person) | Münchau, Wolfgang |
|---|---|
| Series Title | Financial Times |
| Series Details | 7.3.11 |
| Publication Date | 07/03/2011 |
| Content Type | News |
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Wolfgang Munchau writes about the European Central Bank‘s latest announcement, in which the institution announce a certain rate increase. In his opinion, this declaration is a political one. If you take your inflation target seriously and literally, as the European Central Bank does, the decision to pre-announce an almost-certain rate increase is internally consistent. I had expected the ECB to raise its short-term refinance rate in June, but it is now aiming for April. This two-month gap has nothing to do with unexpected price developments. The decision to jump early is political. I am offering three reasons, and one speculation. |
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| Countries / Regions | Europe |
