ECB hikes interest rate to 3.5%
The Yen carry trade going over to Europe now. The Great Silk Road now crosses over the US Dollar. If the ECB continues to raise rates then the Carry will grow in Europe spurring economic growth over there where it has been stale for some time (excluding Eastern Europe). If central banks are acting globally then expect that they targeting liquidity like giant Star Wars laser in times of need.
Thursday, December 07, 2006 8:36:20 AM ET
newratings.com
LONDON, December 7 (newratings.com) – The European Central Bank (ECB) Thursday raised its key interest rate by a quarter percentage point to 3.5%. The Bank of England kept its interest rates steady, however, at 5%.
The ECB’s interest rate hike was the sixth since December 2005, with the European economy continuing to grow at a robust pace. The region’s interest rate had been kept unchanged at 2% for nearly two-and-a-half years before that. The ECB expressed its concern regarding the prospect of rising prices in the wake of robust economic activity in the region in recent months. The central bank added that an inflation rate of 2% represents a comfortable level.
Market Data 
Markets 
