ECB may increase rates to show independence

A

ASusilovic

European Central Bank President Jean- Claude Trichet may today play the interest-rate card and signal to European governments that the euro region’s debt crisis is theirs to solve.

Two days after German Finance Minister Wolfgang Schaeuble opened a rift with the ECB over how to fix Greece’s debt crisis, Trichet is likely to signal that the ECB is ready to raise interest rates for a second time in three months in July, a Bloomberg News survey showed. The central bank today will keep its benchmark at 1.25 percent, a separate survey showed.

http://www.bloomberg.com/news/2011-...-germany-risks-split-on-new-greek-rescue.html

Strong vigilance is needed - as usual...
 
the market has fully priced and discounted a july hike of 25bp.

the only 2 upsets are:

(1) they hike today.

(2) they remove any chance of a july rate hike.

in terms of volatility in a supposed rate rising cycle this is the quietest i have ever seen.

the ever efficient liquidity killing algo system marches on.

yawn yawn.
 
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