European Central Bank ups interest rate

The European Central Bank raised its benchmark interest rate a quarter point to 4.25% to combat fears about inflation.
JUL 03, 2008
By  Bloomberg
The European Central Bank raised its benchmark interest rate a quarter point to 4.25% today in an effort to combat fears about escalating inflation in the region. “This decision was taken to prevent broadly based second-round effects and to counteract the increasing upside risks to price stability over the medium term,” European Central Bank president Jean-Claude Trichet said in a statement. “Maintaining price stability in the medium term is our primary objective and that it is our strong determination to keep medium and long-term inflation expectations firmly anchored in line with price stability.” The interest rate hike comes despite widespread economic uncertainty in Europe over rising oil and food prices. Across the pond, the United States has taken a different tactic to revive a slumping economy, with the Federal Reserve slashing the key interest rate 3.25% since mid September (InvestmentNews April 30). At its last meeting last week, the Fed kept the federal funds rate unchanged at 2 percent, marking the first time in 10 months that the central bank has chosen not to reduce interest rates at one of its regular meetings.

Latest News

RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence
RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence

Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.

Top Commonwealth advisor to recruiters: Stop with the cold calls already!
Top Commonwealth advisor to recruiters: Stop with the cold calls already!

“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.

Blue Owl Capital, Voya strike private market partnership for retirement plans
Blue Owl Capital, Voya strike private market partnership for retirement plans

The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.

Why AI notetakers alone can't fix 'broken' advisor meetings
Why AI notetakers alone can't fix 'broken' advisor meetings

Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."

Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit
Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit

The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.