Europe Interest Rates: One Rise, One Hold

After assessments from the Bank of England and the European Central Bank, the key question is whether the May inflation report will lead to more tightening

European interest rates are on the rise. On May 10, the Bank of England hiked the policy rate by 25 basis points to 5.5%. The same day, the European Central Bank (ECB) left official interest rates unchanged, but hinted at another rate hike in June, and kept all options open for further moves in the second half of 2007.

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