Thursday, 23 August 2007

ECB signals that it will rise interest rates in September as anticipated

Does ECB think that we are facing a financial problem that will not spill over to real economy thus existing no need to stop doing business as usual, namely defining the monetary policy solely according to the inflationary tension that “are” in the horizon?

Does ECB just want to signal that the worst is a bygone having no need to change what was already scheduled before the mini-crash and pushing the investors again towards the market?

Or is ECB just testing the market by underlining that it will probably maintain the pre-announced rise in it’s reference interest rate?

One thing seems sure: the market response was serene all over the world until this moment. PSI 20 is climbing 0,85% with Altri, SGPS (again!) in the limelight (+3,69%), accompanied closely by SEMAPA-S.Inv. Gestao, SGPS (2,19%) and by Mota-Engil, SGPS (+2,10%) – 11:50 GMT.

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