KBC Flash

German sentiment tumbles, as ECB warns interest rates could hit 4 %

Thu, Sep 21 2006, 09:41 GMT
by KBC Market Research Desk

KBC Bank


  • Sentiment among German financial analysts deteriorates sharply…

  • … As ECB steps up rate warnings.

  • ECB ‘sources’ suggest rates could rise to 4 per cent or higher.

  • Tough talk may be to distinguish ECB policy making from a ‘pause’ in the US.

  • Markets still feel softer global growth and easing energy costs will prevent aggressive action.

Published on  Thu, Sep 21 2006, 09:43 GMT

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