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Wednesday, March 30, 2011

European Central Bank will raise rates next month risk a09ets or by catastrophe

more recently, the European Central Bank (ECB) had expressed fear of inflation in the eurozone, at the same time convey high profile to the outside world may be strong signals from April 7 to raise rates. As the world's leading central bank interest rate cycle starts, risk asset markets under attack.

Switzerland Credit (Credit Suisse), likely the European Central Bank interest rates faster than the Fed. From the perspective of the past, since 1970, the Federal Reserve raise interest rates to older than 18 months in Europe.

in addition, considering that eurozone governments are committed to deficit reduction, so the interest rate hike may be in the context of financial constraints, which will fight against risk assets, including the global stock markets.

however, the Fed could once again become a "accident". Fed's quantitative easing program has boosted confidence in the market, but the plan is scheduled for end of the second quarter, will impact liquidity also remains unknown. And now, the European Central Bank in providing liquidity to the financial system.