ECB signals interest rate rise
The European Central Bank has indiacted that there is a possibility of rates moving up as early as next month.
The target inflation rate in the Eurozone is 2% but this figure is now close to 2.5% and rising. Oil price hikes caused by uncertainty in the Middle East will only add to the problem.
The rate rise is expected to be approx 1/4% which will add approx €15 per €100,000 .
The ECB is trying to balance the need to combat inflation with the requirement to support economic growth across the Eurozone.As far as we can see there is going be continued pressure for upward movement in rates ove rthe next two years.