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Article: Markets reeling as the ECB warns of rate rise.
- Article from:
- Irish Independent (Dublin, Republic of Ireland)
- Article date:
- June 6, 2008
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Markets reeling as the ECB warns of rate rise
Irish outlook 'much poorer' in light of likely early July interest increase
IN a move which surprised markets and drove the euro up two cents against the dollar, the European Central Bank (ECB) yesterday warned that interest rates could rise as early as July as it bids to dampen rising inflation in the euro zone.
Economists said such a rise will damage the prospects for economic recovery here, with IIB Bank economist Austin Hughes saying a rise in rates will hit consumer confidence.
The Bank of England also kept its rates on hold yesterday, pegging them at 5.5pc.
ECB president Jean-Claude Trichet said the ...