The ECB suggested further increases in rates
The president of the European Central Bank (ECB), Jean Claude Trichet, appeared today in the European Parliament. The banker claimed to MEPs that growth and inflation in the euro zone remain strong, thus leaving the door open for future increases in fees.
"Economic growth is widening and becoming increasingly sustainable," said Trichet before the committee for economic and monetary affairs of the European parliament. At the same time, he noted that "inflation will remain high in coming years," that interest rates "remain low" and that monetary policy in the euro area remains accommodative. "
Faced with this situation, Trichet EU moved to the camera that "continue doing whatever is needed to contain inflation and to anchor inflationary expectations."
At the last meeting of the ECB, which was held in Madrid and in which rose 0.25% the price of money up 2.75%, Trichet has already suggested that there would be further increases in rates in the future. "If our forecasts for growth and inflation are confirmed, it will be necessary to reduce the laxity of monetary policy," Trichet said.
The futures market on the Euribor two other discounted rate increases: one at the end of August, and another 3% in December, up 3.25%, and further increases in 2007, reaching 3.5% or 3.75%.
Recall that mortgages are often Euribor.
(Unrated) 
Loading ... Written by Carlos Lopez on June 22, 2006 with 6 points.
# 1, warrenbuffet-2
In Spain, where our growth model is based on construction, tourism and domestic consumption (need to live up to date and indebted) we are going to spend quite badly.
I can think of 10 reasons are:
First, because the level of mortgage debt is well above what families can afford.
Second, because the salaries have remained stagnant in many casos.Ni even the CPI.
-Third, because inflation of 4% is a real disaster, even though the emerging countries we are exporting deflation hands full. (Where inflation would be absent these deflationary pressures: 15% minimum)
- Fourth, because tourism is diverted to cheaper destinations.
-Qunto, because the competitive advantage that led to the massive influx of immigrants, and of which benefited in its day the countries around us, is a phase that will end soon.
- Sixth, because they will not take much to raise taxes (VAT, INCOME, HERITAGE, etc.)
- Seventh, because it fuels continue to rise.
- Eighth, because the consequences of globalization are just about to begin, and we will see massive layoffs and relocations.
- Ninth, because sooner or later, will be uploading the welfare state with the premise of being competitive. Health, education, welfare benefits and other services free of charge, will pay.
- Decimo. A very significant and extremely worrying because it is becoming cheaper to buy certain products in France than in Spain.
All this, with rising mortgages, will generate a break not only in the property sector, but consumption in general.
Pray for Germany and France did not really start to pull the economy, because otherwise we are going to come very bad light.
What worrisome is that the Euribor to 12 months which is published every day, seems to confirm this hypothesis: is accelerating. 26/6/06 to day, to 3.458%.
UYUYUYUYYYYYYYYYYYY THAT COMES THE LOBO ¡¡¡¡¡