This months ECB meeting in Frankfurt has kept the main interest rate steady at 1.5% which will be welcomed by everyone with a mortgage, and cursed by people with money on deposit!
The growing concern over the borrowing costs of Spain and Italy and sluggish growth figures worldwide have allowed them to bypass their inflation phobia for a time. The ECB have recommenced their controversial policy of buying Eurozone member states bonds in an effort to reduce yields which have risen to unsustainable levels for both Spain and Italy, whose economies are literally 'too big to fail'.
The EU commission president have admitted that the re negotiated bailout deals for Greece, Ireland etc did not go far enough to provide the stability that the bond market have been seeking, he urged governments to go further in providing funding other troubled countries, this idea was swiftly rebuffed by EU economic superpowers Germany and the Netherlands.
FS 100th Post :)
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