Eurozone interest rates%

Since last June, the euro zone interest rates remained at 4 per cent of the six-year high level. Prevent the economy out of recession and inflation rose to the purpose, the European Central Bank (ECB) and Bank of England (BOE), held in August in the interest of both you and announced to leave interest rates unchanged. ECB rate cut or question the second half of last year in June, the euro zone interest rates remained at 4 per cent of the six-year high level. Although the Fed on April 30 announced that once again lowered interest rates, but the European Central Bank President Jean-Claude Trichet said the central bank also has its own responsibility, the European Central Bank will continue to adhere to price stability policy. "Curbing inflation is still the European Central Bank monetary policy the primary objective," said Jean-Claude Trichet, the European Central Bank to both economic and monetary analysis to formulate monetary policy strategy has the support of two-help stabilize inflation expectations, the euro zone's inflation pressure Smaller than the United States. In inflation, estimated Eurostat, the euro zone in April's inflation rate will slow to 3.3 percent, but short-term inflation rate will remain significantly higher than the European Central Bank to maintain price stability and set the 2% of the "warning line . " Eurozone inflation rate in March rose to 3.6 percent of the record high. In terms of economic growth, the European Commission has forecast inflation to rise, the U.S. economic slowdown and high oil prices affect the EU in 2008 will slow economic growth, in 2009 or further weakening of the euro zone is expected to 15 countries in 2008 economic growth Or 1.7 percent, in February than the expected reduction of one percentage point. In addition, on the 7th released by the euro zone in March retail sales unexpectedly fell 0.4 percent, also indicates the euro zone economic recovery is still facing pressure. But according to the European Central Bank's statistics, the current stability in the euro zone's monetary policy as well. In addition to good employment situation, the euro zone the first quarter of credit growth remained at over 10 per cent, investment and credit is still active. Therefore the European Central Bank will continue to maintain the current policy of price stability, together with other central banks need to ensure financial market liquidity. Analysts expect the inflation pressure has eased, the European Central Bank lowered interest rates tend to be, but this situation have to appear before the second half of this year. BOE rate cut is still the possibility of rising inflation curbing the Bank of England rate cut action. Bank of England still maintain the five percent benchmark interest rates unchanged. According to opinion polls and Citibank survey shows that in April the British public's inflation is expected to reach record high of 3.8 percent, much higher than the Bank of England's 2 percent target rate of inflation. March this year, the British consumer prices rose 2.5 percent. UK Retail Federation announced on the 7th of the data shows that in April than the same period last year food prices rose 4.7 percent, than in March rose 0.6 percent. But the British economy has clear signs of slowing down. 1-3 in the British economic growth of 0.4 percent quarter-over-quarter growth than the same period last year grew by 2.5 percent in 2005 to the lowest level since. In addition, the United Kingdom in April over a year earlier, housing prices fell 0.9 percent while the Confederation of British Industry According to the data provided, the United Kingdom in April retail sales in November 2005 fell to the lowest level since. However, analysts pointed out that the Bank of England rate cut further the possibility still exists. With the real estate market downturn and further financial market liquidity, tensions continued, relevant agencies have lowered the British economic growth is expected. Confederation of British Industry will be 2008 British economic growth expected from two percent down to 1.8 percent, and forecast 2009 growth rate of 1.7 percent. And on the 7th of Britain announced in March manufacturing data accident the same period last year fell 0.5 percent, marking six months, the biggest drop since. Slower economic growth will undoubtedly increase the possibility of central bank rate cut, some market participants expected, in June this year the British benchmark interest rates may be further lowered by 25 basis points to 4.75 percent by year's end, will be lowered to 4%