Europe November 2006

Posted by Scriptaty | 8:00 PM

  • The Bank of England raised its benchmark bank rate 25 basis points to 5 percent in November, the highest interest rate the country has seen in five years. The rate dropped 0.25 percent to 4.5 percent in August 2005, but the BOE has now raised rates twice in four months.

  • The UK’s October unemployment rate increased 0.1 percent to 5.6 from the previous month. Unemployment increased 0.8 percent from October 2005.

  • France’s Q3 economy decreased from the previous quarter. Its September unemployment rate fell 0.2 percent from the previous month to 8.8 percent and dropped 1 percent from the same month a year prior.

  • Germany’s third-quarter GDP increased 1 percent compared to Q2, while it rose 2.8 percent compared to the same quarter in the previous year. The jobless rate fell 0.3 percent to 10.1 percent, 1.3 percent lower than the rate a year prior.

  • The Netherlands followed a European trend of voting for fringe parties in elections, as late November results showed centrist parties such as the Christian Democrats lost ground while leftist parties such as the Socialist Party enjoyed huge gains. The results were a continued sign of dissension against business friendly and socially conservative measures that have passed through Parliament. In the end, 10 different parties won seats.

  • Norway increased its benchmark deposit rate by 0.25 percent in November, putting the rate at 3.25 percent. The increase was the sixth-straight rise of 25 basis points dating back to June 2005.

  • Poland’s ruling party, the conservative Law and Justice party, performed well in rural areas but poorly in many major cities in the November elections. A big loss for the party was in Warsaw where former central bank head Hanna Gronkiewicz-Waltz defeated incumbent Kazimierz Marcinkiewicw to become the city’s first female mayor.