• Ready to raise interest rates
  • July hike already baked in the cake, so no surprise there…
  • 1.25% rate no longer appropriate
  • Monetary policy too loose globally (anybody in mind?)
  • ECB does not have medium-term tax target
  • ECB must not finance governments
  • ECB can’t accept Greek bonds as collateral if rated “default”

0.25% hike baked in the cake at the July meeting so no impact on prices…

Bank of England MPC member Posen disagrees with Stark and the BIS, who earlier called global policy too loose.

  • Nonsense that all central banks should hike rates
  • UK seeing little evidence of growing inflation expectations