The M3 and its influence on the rates.

It seems that inflation is controlled, the oil calm, the economy grows (not an unreasonable rate), but fears of rate hikes to continue there. What we need to control factor? What is of particular concern to the ECB? The answer is a little-known but critical indicator M3.

What is the M3?
The explanation is simple and understandable: The total amount of money in circulation within an economy, and also includes in this concept of debt for certain products with a high degree of liquidity, the money grew by 9.8% in January, the highest since statistics began in 1990. The growth rate for December was revised from 9.7% to 9.8% too.

Therefore, an increase of M3 is often a warning of inflationary pressures and retouching in the rates.

Written by Carlos Lopez on February 27, 2007 0 comments
Read more articles on Euribor.

The Euribor of February, very close to the 4.1%

In the absence of only 2 days to close the month and be able to draw a half (later apply to mortgage fees) Euribor is located in the% 4.95% 4095, again another rise is the highest since August 2001 , The month in which stood at 4108% which could be overcome in mid-March.

Recall, which is expected the European Central Bank will raise the price of money up to 4% in 2007 although there are some entities who think you can tap 4.25%.

Written by Carlos Lopez on February 27, 2007 with 50 comments
Read more articles on Euribor.