Europe September 2006

• The European Central Bank raised its refi rate 0.25 percent to 3.0 percent, the fourth 25-basis-point (bp) increase since December 2005.
  
  
• The Bank of England raised its repo rate for the first time in more than two years, increasing it 0.25 percent to 4.75 percent.
  
  
• Preliminary data in the UK shows the July unemployment rate fell 0.1 percent to 5.5 percent. That represents a 0.7-percent drop compared to July 2005.
  
  
• France’s preliminary GDP data for the second quarter indicated a 1.1-percent increase over the previous quarter.
  
  
• The two leading candidates for France’s 2007 presidential election, socialist Segolene Royal and current Interior Minister Nicolas Sarkozy, are in a statistical dead heat, according to a poll conducted by global research firm Ipsos. However, a poll organized by Ifop, another research firm, shows Royal with a 55-percent to 42-percent lead.
  
  
• Germany’s second quarter jobless rate remained at 10.5 percent, a 1-percent decrease from the same quarter last year. The country’s Q2 GDP increased 1.1 percent from last quarter and 1.8 percent from Q2 of 2005.
  
  
• Norway’s Central Bank increased the deposit rate 0.25 percent to 3 percent. The move was the fourth 25-bp jump since November 2004.
  
  
• Denmark’s National Bank raised its 2-week CD rate 0.25 percent on Aug. 3 to 3.25 percent. The increase was the fifth since December 2005.
  
  
• The National Bank of Slovenia raised its 60-day tolar bill rate 25 bps to 3.5 percent. The increase was preceded by three 0.25-percent decreases and put the interest rate at the same level it was at in March.