Banking, finance, and taxes
E.U. Delivers Its Rate Hike... U.K. Next or U.S. Next?
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The move is too soon but it was widely expected to occur. The European Central Bank raised its benchmark interest rates by 0.25% to 1.25% this morning. The move is to counteract inflation and it also came after the United Kingdom left its rates on hold.
While the United States could raise rates and not derail the recovery, Europe is in a situation that looks more and more like it is German policy management for the German economy. If you consider the woes of Portugal, Ireland, Greece, and Spain, the move seems almost baffling. The problem is that if you add all of those economies up, they are nowhere close to equating one Germany.
This was the first hike since mid-2008. When it is expected to occur there is just little very little reason sit around analyzing the move. The Titanic is sunk. No reason to rearrange the deck chairs.
JON C. OGG
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