• Bank of England refers to rapid credit and money growth to justify yesterday’s rate hike
  •  Two-day ECB conference on ‘the role of money’ highlights importance of monetary indicators in the ECB interest rate decision-making process
  • M3 money supply growth accelerated over 2006, despite recent tightening
  •  ECB’s Weber and Garganas unsatisfied with current inflation outlook
  • Sustained strong eco data lessen fears for German VAT increase and US slowdown
  • Consequently, we raise our official target for ECB rates from 3.50% to 3.75%