ECB Hikes Rates, Hints at Dovish Stance in August

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The European Central Bank raised interest rates by 25 basis points to 1.50 percent on Thursday, as it continued to brush off concerns over slow growth and sovereign debt worries in the euro zone periphery. ECB President Jean-Claude Trichet hinted at his press conference that a further rise in August is unlikely.

The ECB also raised its marginal lending rate by 25 basis points to 2.25 percent and its deposit rate to 0.75 percent.

Speaking at a press conference following the decision, Trichet said that the bank will "monitor very closely" upside risks to price stability in the euro zone. In the ECB's code word system, this generally indicates that the bank will not raise rates at the next meeting, analysts have said.

Trichet said that the bank was concerned about inflation, which currently stands at 2.7 percent, above the target rate of 2 percent. Inflation risks are to the upside, he said, particularly due to increasing energy prices.

http://www.cnbc.com/id/43666225?__source=yahoo|related|player|text|&par=yahoo

Why is it that they can raise rate in the euro zone and not here? You'd think we'd have more of a cause, or one just as important of a reason to do so given the paltry state of affairs here in America.

Things aren't going to get any better any time soon as no one has any dividends coming in on what monies they may have that are not invested on Wall Street! If you have no dividends, there is no money to spend for many people out there. :dunce:

:dem: