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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (448)	7/6/2001 2:19:35 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

ECB Says Rate Cuts Aren't Imminent Despite a Spike in German Joblessness interactive.wsj.com By G. THOMAS SIMS Staff Reporter of THE WALL STREET JOURNAL FRANKFURT -- The European Central Bank made it unusually clear Thursday that it won't cut interest rates anytime soon despite mounting calls that economic weakness warrants a move in the coming weeks. ......................................................................................................................... The ECB justified its decision on the outlook for inflation. The annual inflation rate in the euro zone is 3.4%, and even though the bank believes the high rate is temporary, it could cause workers to raise their wage demand, fueling inflation later on down the road. "When looking back, the wage developments seen so far have been satisfactory, while, when looking to the future, there is ongoing concern," Mr. Duisenberg said. The bank generally believes that inflation will recede, but as it does so, consumption and economic growth will get a boost. The ECB expects inflation to fall back below its upper limit of 2% at some point next year, though Mr. Duisenberg indicated it would be a close call. If the ECB were to cut interest rates, "we would in all likelihood . . . not reach that goal," Mr. Duisenberg said.