Interest rates, exchange rates and annual holidays
As expected, the Monetary Policy Committee of the Bank of England has cut the base rate by 0.25% today.
read more...»Slovakia applies to join the Euro
Slovakia today made a formal application to join the single European currency and bid to become the fourth of Europe’s new member states to progress to the next stage of economic integration by locking themselves into the Euro. A verdict on entry is likely to come as early as May 7th when the EU commission publishes new economic forecasts which will include data on the key convergence criteria for wannabee euro zone members. If all goes well, Slovakia will enter the single currency system on 1st January 2009.
ECB inertia threatens the slow lane
Central banks in the USA and the UK are cutting interest rates as credit crunch 2.0 takes hold. But the European Central Bank is holding firm with official rates at 4 per cent despite mounting evidence that the surging Euro-dollar exchange rate is hitting investment, exports and growth prospects. Why the inertia? And is the ECB so firmly fixated on the altar of price stability that it is prepared to allow the Eurozone economy to tumble into a growth recession thus putting the future of the single currency area under theat?
