The ECB will raise interest rates in October-December - Goldman Sachs

The European Central Bank (ECB), probably will not raise the base interest rate until the fourth quarter of 2011, despite the acceleration of inflation, as the eurozone's banking sector remains weak, says principal analyst at Goldman Sachs at rates Francesco Gartsarelli. "At this stage, it seems, his hands still bound by the ECB because of fears of insolvency of some banks - said F. Gartsarelli in an interview with Bloomberg. - Ultimately, these issues will be addressed by governments, that the ECB is exempt from the need to overcome this problem and he be able to return to its primary task - to regulate inflation. " Estimated to Goldman Sachs, the eurozone central bank will increase the cost of credit in October and December this year. Last week the ECB left interest rates at a record low of 1%, while inflation accelerated in December to 2,2%, ie for the first two years were higher targetiruemogo CB level (2%). Source: Finmarket