Spain Business Brief - Thursday October 6 2011
The European Central Bank has ignored the markets and kept interest rates today at 1.5%. The concern about increasing inflation in the Eurozone has led to the decision adopted on Thursday.
The International Monetary Fund was among those who had asked for a reduction in interest rates to favour growth, and other experts think that the rate should have been cut to zero to stimulate investment.
Other experts have described the decision as bad news and going against the tide as the United States is doing the opposite.
The European Central Bank is however going to lend to banks all the liquidity which they need.
Brussels has ruled out the creation of a European public ratings agency. The President of the European Commission, José Manuel Durao Barroso, ruled out the idea, but has said that they continue to work on legislation ‘which will reduce the dependency to three or four agencies’. Barroso has said that he wants to see a joint EU action to recapitalise European banks. It comes after the EU has already invested at least 500 billion directly to save the banks. Barroso says that Europe will emerge stronger from the economic crisis.
The European Central Bank has ignored the markets and kept interest rates today at 1.5%. The concern about increasing inflation in the Eurozone has led to the decision adopted on Thursday.
The International Monetary Fund was among those who had asked for a reduction in interest rates to favour growth, and other experts think that the rate should have been cut to zero to stimulate investment.Other experts have described the decision as bad news and going against the tide as the United States is doing the opposite.
The European Central Bank is however going to lend to banks all the liquidity which they need.
Brussels has ruled out the creation of a European public ratings agency. The President of the European Commission, José Manuel Durao Barroso, ruled out the idea, but has said that they continue to work on legislation ‘which will reduce the dependency to three or four agencies’. Barroso has said that he wants to see a joint EU action to recapitalise European banks. It comes after the EU has already invested at least 500 billion directly to save the banks. Barroso says that Europe will emerge stronger from the economic crisis.
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