Brawny euro's interest rate holds steady

The European Central Bank held its key interest rate at 4%, while The Bank of England cut interest by a quarter-point.
DEC 06, 2007
The European Central Bank held its key interest rate at 4% while The Bank of England cut interest by a quarter-point to 5.5%. The European Central Bank held its key interest rate at 4% and warned that risk in the financial markets may make it hard to determine the economic impact on the 13 countries that use the Euro. The bank decided to hold off on raising interest rates as inflation reached the 3% mark in November and manufacturing gauges increased in November, a sign of the euro's strength against the dollar. "The economic fundamentals of the euro area remain sound," said European Central Bank president Jean-Claude Trichet, according to a statement. "However, the reappraisal of risk in financial markets is still evolving and is accompanied by continued uncertainty about the potential impact on the real economy." Meanwhile, The Bank of England decided to cut interest rates in the first time in two years by a quarter-point to 5.5%, amid fears that deteriorating financial markets and the credit crunch will hurt economic growth. The rate cut, which was the first since August 2005, follows five hikes since August 2006. "Although output in the United Kingdom has expanded at a brisk pace for the past two years, there are now signs that growth has begun to slow," the Bank of England said in a statement.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income