European Central Bank has its key interest rate Thursday in a continuing effort to fight inflation.
Rate is the ECB 1.50% now, up from the previous set 1.25% rate in April.
In a press conference following the announcement, ECB President Jean-Claude Trichet said, it is of "paramount importance", which the rise in inflation, under the direction of higher energy prices, do not be broad-based.
Global investors look closely the language of central bankers for code words, the possible changes in monetary policy down the road.
In June, "very vigilant" Trichet said about inflationary pressures-that today's rate increase hardly surprise made. On Thursday this language do not repeat Trichet.
At a press conference reporter throwing him with questions about the debt crisis before the so-called periphery countries Europe's Greece, Ireland, Portugal and Spain.
Higher interest rates make it more expensive for these countries their debts to pay off.
Trichet repeated several times on Thursday that the ECB in the best interest of the 330 million people in 17 countries of the eurozone is acting. He believes that keeping inflation under control for the region as a whole, essential for maintaining the ECB credibility.
On Tuesday, Moody's downgraded Portugal financial loans, and last week, the European Union approved a further tranche bailout funds for Greece.
Thus Portugal secure funding, announced Trichet, that the ECB will bend the rules for the country. Although Portugal ratings to junk status has, he said the ECB still his Government bonds as collateral for loans, accept.
The ECB has this same courtesy Ireland earlier this year, and Greece in 2010.
Central banks of the advanced economies of the world have kept interest rates since 2008 and 2009, as a way, helical-bond and expenditure by the global financial crisis at historic lows. But lately have rising prices could remove raised fears that inflation will begin.
Just last week, central banks, which the Bank for international settlements warned "Tighter global monetary policy is needed to fight included off inflationary pressure and financial stability risks."
Unlike the fed, the ECB-which is often much more cautious of Inflation--aggressively tries the NIP in the bud.
The ECB last raised interest rates in April, the first time that it had done since the recession.
Meanwhile, the Bank of England, which meets on Thursday kept its key interest rate unchanged has.
Rate is the ECB 1.50% now, up from the previous set 1.25% rate in April.
In a press conference following the announcement, ECB President Jean-Claude Trichet said, it is of "paramount importance", which the rise in inflation, under the direction of higher energy prices, do not be broad-based.
Global investors look closely the language of central bankers for code words, the possible changes in monetary policy down the road.
In June, "very vigilant" Trichet said about inflationary pressures-that today's rate increase hardly surprise made. On Thursday this language do not repeat Trichet.
At a press conference reporter throwing him with questions about the debt crisis before the so-called periphery countries Europe's Greece, Ireland, Portugal and Spain.
Higher interest rates make it more expensive for these countries their debts to pay off.
Trichet repeated several times on Thursday that the ECB in the best interest of the 330 million people in 17 countries of the eurozone is acting. He believes that keeping inflation under control for the region as a whole, essential for maintaining the ECB credibility.
On Tuesday, Moody's downgraded Portugal financial loans, and last week, the European Union approved a further tranche bailout funds for Greece.
Thus Portugal secure funding, announced Trichet, that the ECB will bend the rules for the country. Although Portugal ratings to junk status has, he said the ECB still his Government bonds as collateral for loans, accept.
The ECB has this same courtesy Ireland earlier this year, and Greece in 2010.
Central banks of the advanced economies of the world have kept interest rates since 2008 and 2009, as a way, helical-bond and expenditure by the global financial crisis at historic lows. But lately have rising prices could remove raised fears that inflation will begin.
Just last week, central banks, which the Bank for international settlements warned "Tighter global monetary policy is needed to fight included off inflationary pressure and financial stability risks."
Unlike the fed, the ECB-which is often much more cautious of Inflation--aggressively tries the NIP in the bud.
The ECB last raised interest rates in April, the first time that it had done since the recession.
Meanwhile, the Bank of England, which meets on Thursday kept its key interest rate unchanged has.