

ECB Raises Interest Rates to 0.75%
The expected raising of the interest rate by the ECB sent a short-term positive signal to the stock market.
The expected raising of the interest rate by the ECB sent a short-term positive signal to the stock market.
Euro zone inflation, which peaked at 9.1% in August, has reached its highest point since the introduction of the euro in 1999. Amidst fears of entrenchment, the ECB is preparing a major hike in interest rates that may also slow down the economy.
When the ECB raises interest rates, all other things equal it increases demand for euros on the global foreign-exchange market.
There are more signs of a possible new debt crisis in Europe.