Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Monetary Tightening Ends in Europe

Monetary tightening ends in Europe. The European central bank reinforced its position that more interest rate increases were now excluded, causing the euro to drop. “Uncertainty is particularly strong”, said Jean Claude Trichet, yesterday, after announcing that the rate will remain at 1.5%. ECB’s refinancing rate stays at 1.5% and the bank keeps the deposit facility rate at 0.75%. ECB also revised its assessment of growth and now gives more weight to risks.

The Bank lowered its inflation forecast for 2012 to between 1.2% and 2.2% as inflation risk wane and the growth forecasts in euro zone worsens, but it did not change the previous forecast for 2011 which was between 2.5% and 2.7%. The ECB also revised down its growth forecast. It expects a growth rate between 1.4% and 1.8% in 2011 (previous forecast was between 1.5% and 2.3%).The bank also cut its growth forecast for 2012 to a range between 0.4% and 2.2%. Jean Claude Trichet said they are ready to do whatever is necessary while emphasizing the uncertainty about the global economy.

The reaction to Jean Claude Trichet’s speech: the euro fell against all major currencies except the Swiss franc.

The ECB raised interest rates in April and July 2011 to fight against inflation threat. However, the European debt crisis spread, the confidence waned and on the hike of borrowing costs, many economists such as Stiglitz and Nouriel Roubini urged the bank to reduce the rates.

Also, the bank of England kept its interest rate unchanged at 0.5%. So, it seems like monetary tightening ended in Europe.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!