Thu, Jun 5 2008, 08:26 GMT
by Marina Schiaffino
ECB and BoE monetary policy committees will
announce today their latest monetary policy decisions. Both are expected to
keep their key interest rates unchanged, taking in account the fast
growing inflation driven by soaring energy prices. The ECB stands at 4% right now, while the BoE is at a higher 5%.
The Bank of
England’s monetary policy committee ruled out last month two
back-to-back rate cuts, a 25 basis point rate cut was approved in
April, to stimulate economy, with inflation growing at a pace well
above the 2.0% upper limit of the Bank’s margin for price stability.
The ECB faces a rather similar situation, although in this case interest rates have been steady at 4% since June 2007, the odds for a rate cut are minimal. The OECD, in its economic outlook considers the Euro Zone’s monetary policy as finely balanced between upside risks to inflation and downside risks to growth.
Check the effect that the meetings have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. And remember that you can attend to our special live coverage: "BoE, ECB and Trichet's Speech Live Coverage with Dr. S. Sivaraman" on Thursday June 5, at 10:45GMT, both from FXstreet.com or from the proper event in the Economic Calendar.
Published on Thu, Jun 5 2008, 08:35 GMT
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