Sunday, April 3, 2011

ECB criticised over expected rate rise

Financial Times
April 3, 2011

The European Central Bank faces an international backlash this week, when, in spite of the eurozone debt crisis, it is expected to raise interest rates and to consider ways of weaning the weakest banks off its offers of unlimited liquidity.

Plans by the ECB to tighten monetary policy before the US Federal Reserve and Bank of England were criticised at the weekend as premature and potentially dangerous by economists. The finance minister of Greece voiced concern; Greece, along with other eurozone “periphery” countries is undergoing painful economic restructuring.

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