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Article: Making a point; European Central Bank.(The European Central Bank)
- Article from:
- The Economist (US)
- Article date:
- May 7, 2005
CopyrightCOPYRIGHT 2005 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Despite sluggish growth and low inflation in the euro area, Jean-Claude Trichet, president of the European Central Bank, is in no mood to cut interest rates. Why?
EVERY now and again, the 18 men and women who set interest rates for the euro area hold their monthly meeting not at the European Central Bank (ECB) in Frankfurt, but somewhere else in the single-currency zone. This week was just such an occasion, with Berlin playing host on May 4th. Not that it made any difference: rates were held at 2% for the 23rd month in a row. In that time, the ECB has watched America's Federal Reserve raise interest rates eight times--most recently by a quarter of a percentage ...