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Article: On hold; European interest rates; The ECB and interest rates.(Finance and Economics)(European Central Bank)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- March 31, 2001
CopyrightCOPYRIGHT 2001 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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AFTER a will-they, won't-they week, they didn't. Although quite a few commentators had mused that the European Central Bank ( ECB ) might cut euro-area interest rates on March 29th, the ECB kept rates at 4.75%. However, most economists think that rates will fall soon, probably on April 11th, when the ECB meets next.
Like the bank itself, the art of working out what the ECB will do next is still in its infancy, despite the bank's best efforts at conveying a clarity of purpose. Its president, Wim Duisenberg, holds monthly press conferences. The bank has an inflation target. It has set out the theory on which its policy is based. Contrast this with America's Federal ...