ECB rate rise will signal German recovery is on

The expectation of a rise in interest rates in Europe is being viewed as good news by Ashburton. An increase would signal that the economy has recovered enough to cope with a higher rate of interest. Earlier in the year the European Central Bank cut the rate to assist with the recovery of the German economy Peter Lucas, fund manager at Ashburton, is currently considering increasing his exposure in European equities. He says: "An interest rate of 2.5% is too low for a region which is growing rather than one that is in recession. I would be surprised if the increases moves the rate above 3....