Both the European Central Bank (ECB) and the Bank of England have decided to hold their official rates unchanged in their separate August reviews. Both are seeing inflation rising above their target ranges, and growth slowing. The ECB noted that, having increased its rates by +0.25% in July, there remain "upside risks to price stability". They are also concerned about loose fiscal discipline among member nations as countries grapple with sharply slowing growth. In a statement, Jean-Claude Trichet, President of the ECB, emphasised the importance of keeping "medium to longer-term inflation expectations ... firmly anchored at levels in line with price stability". The Bank of England will issue the reasons for its 'hold' decision on August 20, 2008. It last changed rates on April 10, 2008, reducing them -0.25% to 5.00%.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.