ECB may increase rates to show independence

Discussion in 'Wall St. News' started by ASusilovic, Jun 9, 2011.

  1. European Central Bank President Jean- Claude Trichet may today play the interest-rate card and signal to European governments that the euro region’s debt crisis is theirs to solve.

    Two days after German Finance Minister Wolfgang Schaeuble opened a rift with the ECB over how to fix Greece’s debt crisis, Trichet is likely to signal that the ECB is ready to raise interest rates for a second time in three months in July, a Bloomberg News survey showed. The central bank today will keep its benchmark at 1.25 percent, a separate survey showed.

    Strong vigilance is needed - as usual...
  2. They're not gonna hike today... That's blx.
  3. the market has fully priced and discounted a july hike of 25bp.

    the only 2 upsets are:

    (1) they hike today.

    (2) they remove any chance of a july rate hike.

    in terms of volatility in a supposed rate rising cycle this is the quietest i have ever seen.

    the ever efficient liquidity killing algo system marches on.

    yawn yawn.