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Article: ECB shapes up for zero tolerance of our zero real interest rates.(BUSINESS)

Article from:
Irish Independent (Dublin, Republic of Ireland)
Article date:
November 9, 2006
Copyright

Byline: BRENDAN KEENAN

'I'VE had nothing yet,'' Alice in Wonderland complained, "so I can't have more": to which the Mad Hatter sagely replied, "You mean you can't take less."

It does indeed depend on how you look at it. It appears that many people, in and out of the financial markets, believe interest rates can only go up a little bit, if at all. They are in the opposite position to Alice; they believe they have had quite a lot already and cannot have much more. To which, this particular Hatter would also reply, "You mean you can't have less."

In the euro area, real interest rates (after inflation) have been next to nothing for four years. ...

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