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Article: EMU: ECB RAISES KEY RATE IN SPITE OF MEMBER STATES' RESERVATIONS.(Economic and Monetary Union)(European Central Bank)
- Article from:
- Europe-East
- Article date:
- December 15, 2005
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The decision had been widely predicted and indeed sparked a dispute between the ECB and euro-zone countries. This is the first increase in rates after two and a half years unchanged. Deposit facility and marginal lending facility rates, which frame the main refinancing rate, have also been raised by a quarter of a point to 1.25% and 3.25% respectively.
Jean-Claude Juncker denounced the move before MEPs on November 29, indicating with more than a note of irony that if the ECB were to raise rates "I would conclude that it regards growth and growth prospects to be sufficiently robust as to be invulnerable". A few minutes before the official announcement of the ECB's ...