Interest Rates Raised Up To 1.25% By European Central Bank

By on Apr 7, 2011 in Banking, Business, Economy, Finance Comments
Interest Rates Increased by ECB
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Interest rates were raised by the European Central Bank (ECB) up to 1.25%, from its previous interest rates of one percent, on Thursday, April 7, 2011, according to several international reports.

ECB President Jean-Claude Trichet explained that the increase in the interest rates is needed to stabilize food and energy prices.

According to other reports, interest rates were relatively lower in Central Banks around the world since 2008. Banks attributes economic growth on low interest rates. However, due to continued rise in food and energy costs, increasing the interest rates will level help stabilize the prices of commodities.

This is the first interest rates increase by the ECB since 2008.

The China Central Bank have earlier increased their own interest rates.

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