Europe May 2005

Posted by Scriptaty | 8:00 PM

  • France’s January unemployment remained unchanged from December’s 10.1-percent rate. However, the data was undergoing a revaluation at press time.

  • German unemployment dropped 0.1 percent in February to 12.5 percent, 1.6 percent below the February 2004 rate.

  • The chief economist at the Bank of Ireland predicted a rise in UK interest rates at the June meeting. In the B of I’s monthly bulletin, Dr. Dan McLaughlin “projects a gradual rise in inflation over the next two years until it exceeds the 2-percent target in early 2007. This can be seen as justification for further monetary tightening.”

  • All 72 European economists surveyed in a Reuters poll believe the European Central Bank will leave interest rates at 2 percent when the ECB meets May 4, and 38 of the 72 believe rates will rise before the end of the year. One economist predicts a rate cut before 2006.

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