Notis Marias, Greek Independent MEP, explains why he thinks that the European Central Bank is profiting from Greece's debt.» Read More
The European Central Bank's inability to raise rates may mean the time for a jump back into the dollar has arrived, as the full effects of the credit crunch still have to be felt in Europe, analysts told CNBC.com.
The European Central Bank's hawks must be aching to hike rates, but they will likely sit on their hands again and leave rates at 4 percent despite inflation rising to 3.6 percent in May.
Sky-high fuel and food prices crashed the party when finance ministers flocked to Frankfurt to celebrate the inflation-fighting European Central Bank's 10th birthday on Monday, a milestone in Europe's monetary union.
European stocks are set to stay range-bound this week as the subprime crisis continues to take its toll on confidence and rising inflation means investors do not expect the European Central Bank to cut rates any time soon.
Global food prices could rise further in the short term and keep rising over the longer term as supplies are unlikely to match increased demand, a European Central Bank note said.
Would you believe it? It's already 10 years, since Riverdance power-danced the new bank for Europe through its inauguration at Frankfurt's venerated old opera, with great fanfare, festive speeches and "Ode to Joy", Europe's national anthem.
On the verge of the European Central Bank's 10th anniversary, the news on inflation doesn't look good. Against the bank's target of "below but close to" 2 percent, euro-zone prices rose 3.6 percent in May, compared with the year ago, back to a historic high, data showed on Friday.
The chief executive of Europe's biggest lender on Tuesday called on central bankers to raise interest rates in order to combat inflation.
European Central Bank head Jean-Claude Trichet said on Monday that financial markets were experiencing an "ongoing correction" and repeated that the G7 was concerned about excessive dollar volatility.
Euro zone economic growth looks set for a sharp slowdown in the second quarter after a strong performance at the start of the year, data showed on Friday, but rocketing inflation will keep interest rates on hold.
Erin Burnett has been travelling the globe in search of the market movers of tomorrow. So far she has been to Dubai in the United Arab Emirates and Mumbai, India. Today, she is in London. Like last week's comparison of the UAE and India, here are some stats comparing the UK and the US.
European Central Bank President Jean Claude Trichet warned on Monday that the end of the credit crunch was not yet in sight and the world was experiencing an "ongoing and very significant market correction."
- Notes from an ECB groupie's travelog -
ECB policymaker Christian Noyer said on Tuesday that an explosive mix of soaring commodity prices and "permissive" monetary policy in some countries with dollar pegs could trigger an inflationary spiral which would hurt poor nations most.
European shares ended slightly lower on Thursday, weighed by financials after the region's top two central banks kept rates on hold as expected and investors saw little to suggest euro zone borrowing costs would fall soon.
The European Central Bank left its key interest rate unchanged at 4 percent on Thursday, as widely expected, and its president Jean-Claude Trichet warned on inflation pressures.
The European Central Bank will most likely do on Thursday what it has done every month since the credit crunch started last August: keep rates steady and talk tough on inflation.
The European Central Bank is widely expected to keep interest rates on hold at 4 percent on Thursday, but the opposing pressures of rising inflation and slowing growth could mean the central bank has to act before the year is out.
Euro zone inflation slowed more than expected in April, an early estimate showed, but economic sentiment also deteriorated faster than forecast, pointing to slowing economic growth.
The European Central Bank has to ask itself each month whether a rate rise is needed to control inflation, ECB Governing Council member Yves Mersch was quoted as saying in a newspaper report on Tuesday.