Friday, 7 December 2007

Finnish Nurses, German Train Drivers Prevent ECB Cut

"Finnish nurses and German train drivers may prevent European Central Bank President Jean-Claude Trichet from cutting interest rates next year."

"In Finland, 15,350 nurses withdrew a mass resignation on Nov. 19 after winning as much as 28 percent in wage increases over four years. Workers at state-owned liquor stores in Finland averted a strike by agreeing to a pay raise of 12.6 percent over two years."

"In Germany, Europe's largest economy, state-owned railway Deutsche Bahn AG last week reached agreement with 135,000 employees to increase their salaries by 10 percent through 2010."

"The ECB today raised its 2008 inflation forecast to about 2.5 percent from 2 percent."

While Central banks from developed countries are cutting rates, the ECB cannot as inflation has reached level not seen since the beginning of the decade and pressure of higher salaries are on the increase.

US, UK, Canada have cut interest rates as they are seeing a weakening economy due to the current credit crisis. UK, Ireland and Spain housing will, with no doubt, falter next year...

No comments: