ECB Rate Unchanged at 1%

Yes, but Trichet said a possible increase on the cards in April. That is earlier than anticipated.
 
Just saw that - "strong vigilance" is back - not such good news.

Speaking in Frankfurt, Mr Trichet said inflationary pressures had increased over the last month and that "strong vigilance" was required.

"Strong vigilance is warranted with a view to containing upside risks to price stability," Mr Trichet said.

The ECB used the phrase "strong vigilance" repeatedly during its 2005-2007 rate hike cycle, typically one month before it raised rates, although there were exceptions to that rule. It is not clear whether the verbal signal still holds good.

[broken link removed]
 
My source mentioned that Trichet explicately said 'April'.
Bad news for many mortgage holders who bought during the boom like myself.
 
although I want my monthly mortgage repayments as low as possible, after enjoying an ecb rate of 1% with my tracker, I am prepared over the next few months for ecb rate increases. I won't be changing to a fixed rate. Even if the ecb rate increases to 4% over the next 2 years, this rate is still better than the fixed rate I was on 3 years ago. If Enda & co introduce the extra interest relief for 2004-2008 buyers this will compensate me for any ecb rate increase.
 
Tracker mortgage holders have been very lucky and I budgeted for any increases - but will lose my job next year.
I don't know if I am in favour of extra interest relief - nobody was forced to buy.
 
I will take any extra relief going. Due to cancer I am gonna be off work for about 2 years by the time I work again in 2012. I agree, nobody was forced to buy. I am happy to pay my own mortgage every month and not some landlords or speculators with rent.
 
I am sorry to hear that STEINER.
Nobody was forced, so we have to take responsibility ourselves. However, I think also that the Government should be held accountable for the mess they caused with their policies. Ok, that is done now with the election outcome, but that won't help a lot of people.

Economistst expect the interest rate to be around 2.5 % at the end of 2012. I am afraid that could be higher - oil and food prices keep rising and the big EU economies are doig well.
 
The ECB has to raise the interest rate at some stage, however, this appears to be a lot earlier than expected.

I realise that many EU economies are doing well. However, would it be unwise for the ECB to increase rates considering the state of countries like Greece, Ireland and Portugal etc?? Any increase could send these countries over the edge and consequently backfire on the ECB.
 
Paulk said:
Any increase could send these countries over the edge and consequently backfire on the ECB.
Click to expand...
I think too much is made of the importance of Ireland, Greece and Portugal in the European scheme of things. If anything these countries will merely be refered to as collateral damage when history looks back.
 
I saw Trichet on the news regarding this. He had said about the possibility of a rise, but did not say that there would definitely be one in April, but he wasn't ruling anything out. I've just gone on to my 2.25% tracker rate, I wouldn't mind a few more months at it!
 
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