The European Central Bank (ECB) has increased interest rates by a further 0.25% to 2.5%.
Quentin Fitzsimmons, manager of the Threadneedle Absolute Return Bond Fund, said: “By raising eurozone interest rates by 25 basis points to 2.5%, ECB president Trichet is now following the current theme of global central bankers, to neutralise the threat to long-term stability posed by high levels of liquidity and strong asset markets. “With a moderately better outlook for Germany and continued evidence of strong growth in monetary aggregates, we believe the ECB will use this window of opportunity to raise rates by at least another 25 basis points this year. We may not see the end of the tightening cycle until 2007."
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November
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