Economics
Trichet Signal Just a Respite for Indebted Nations: Euro Credit
This article is for subscribers only.
Jean-Claude Trichet’s signal that the European Central Bank will hold off raising interest rates next month may provide only a respite for distressed euro nations grappling with anemic growth and demands to cut their debt.
The ECB president indicated that the bank will wait until after June to raise rates for a second time this year after the ECB left its benchmark rate at 1.25 percent yesterday. The prospect of rising borrowing costs underscored Europe’s economic divide and political tensions over bailouts.