Will the ECB keep its interest rate high?

[Melchior]

Is the ECB going to keep its main interest rate high or is it going to cut the interest rate soon?

Apparently
"German Inflation Slows More Than Economists Forecast"
http://www.bloomberg.com/apps/news?p...d=aPlUPcimAhUo
as an early Easter caused a drop in costs for package holidays and vacation accommodation.

However pretty much all the analysts recently polled by Reuters expected that the ECB would leave its main interest rate at 4% at its meeting in May, and the chances of an interest rate cut in September seem to be dwindling too:
http://www.reuters.com/article/telec...080430?sp=true

[phirang]

Re: Will the ECB keep its interest rate high?

many industries in germanie dont suffer from strong euro... they import a lot of energy and materials, nicht war?

[krakknisse]

Re: Will the ECB keep its interest rate high?

Is the ECB going to keep its main interest rate high or is it going to cut the interest rate soon? Apparently
"German Inflation Slows More Than Economists Forecast" http://www.bloomberg.com/apps/news?p...d=aPlUPcimAhUo
as an early Easter caused a drop in costs for package holidays and vacation accommodation.

However pretty much all the analysts recently polled by Reuters expected that the ECB would leave its main interest rate at 4% at its meeting in May, and the chances of an interest rate cut in September seem to be dwindling too:
http://www.reuters.com/article/telec...080430?sp=true

FWIW, I'm voting with my feet and betting that inflation will come to Europe, and that real interest rates will fall to close to or below to zero. I may be early. This would make Euro-denominated gold a good play. The dollar is getting stronger, which is a little early. But timing these sequences of events is not my strength. The biggest credit bubble in a long time is blowing up, and I'm following the ITulip Way(TM)/Austrian credit bubble crack-up: betting on an inflationary recession. I'd like to hear what others think, though.