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Image header Agence Europe
Europe Daily Bulletin No. 9086
Contents Publication in full By article 18 / 47
GENERAL NEWS / (eu) eu/ecb

Increase in rates not ruled out in short term, says Mr Weber

Brussels, 09/12/2005 (Agence Europe) - A surprise increase in interest rates cannot be ruled out, according to Axel Weber, who adds that one should not necessarily expect a systematic pre-announcement strategy on the part of the European Central Bank (ECB). In an interview with German daily newspaper Frankfurter Allgemeine Zeitung, the governor of the Bundesbank said that "increases in the rates may also take place in the short term, and without a long period of preparations in terms of communication". Jean-Claude Trichet may well have prepared people for the increase which took place last week, "when a change in course takes place in the monetary policy, preparations for a subsequent gesture on rates does not call for the same care to be taken", Mr Weber explained. He added: "those who know our strategy are well able to imagine what the appropriate reaction will be to recent economic data". After the stance taken by the governor of the Luxembourg Central Bank, Yves Mersch (EUROPE 9085), the application of the ECB's freedom of action, Mr Weber once again underlined, would, however, seem almost to be used to prepare the ground for a further increase in rates. This is expected by many economists early in 2006.

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