Instant View: ECB raises key interest rate as expected
The European Central Bank raised its key interest rate by 25 basis points to 1.25 percent on Thursday, tightening policy as expected to counter firming price pressures in the 17-country euro zone.
COMMENTARY:
DANIEL BRIESEMANN, COMMODITY ANALYST, COMMERZBANK
This came as expected, it was definitely a non-event. Everything should have already been priced in so there has been no effect on oil prices. I think Trichet's press conference will at least be more interesting than the decision itself.
HOWARD ARCHER, IHS GLOBAL INSIGHT
It would have been a major shock if the ECB had not acted given the stream of senior ECB policymakers out in force recently highlighting the case for an interest rate rise now to contain the risk of second round inflationary effects developing from the current spike up in euro zone consumer price inflation resulting from higher energy and commodity prices.
What is Of critical interest now is whether or not the ECB in its statement and Mr. Trichet in his press conference give any clue as to how quickly interest rates are likely to rise going forward.
(Reporting by Paul Carrel)
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