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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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From: russwinter4/28/2006 2:24:20 PM
   of 110194
 
These markets have gone merrily along for several years with the consensus receiving few if any surprises. Perhaps that's a permanent situation, then again this is just the kind of climate to get rolled by one Here's a possibilty:

While ECB President Jean-Claude Trichet this month dashed investors' expectations of a rate hike when the bank's governing council next meets on May 4, economists are now discussing whether policy makers will still do so or perhaps raise its key rate by 50-basis points when they next convene in June. The ECB last raised interest rates by such a margin in June 2000.

Move in May?

``The risk the ECB comes up with a 50 basis point increase at some point has increased, because the data we've seen is pretty good,'' said Dirk Schumacher, an economist at Goldman Sachs Group Inc in Frankfurt.


bloomberg.com
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