We expect [the ECB] to do the same thing, |
We may still get a deal but it may not be thorough enough. |
We think around 4.5 percent is the adequate level for U.S. interest rates -- you could call it a neutral level -- and as there are modest inflation risks in the U.S., we expect the Fed to go slightly beyond that to 4.75. |
We won't see any steps backwards, but the tempo of reforms will slow. Germany won't be able to tap into its full potential. The economy is improving, it'll simply improve more slowly. |
We've just had the worst 24 hours for the European reform outlook in a long, long time. |
Whatever the color of Germany's new government will ultimately be, the pace of structural reforms is likely to be slow. |
Whenever an economy is struggling, one should not raise taxes, ... New taxes will probably cut growth by 0.3 percent of GDP. |
Whenever an economy is struggling, one should not raise taxes. New taxes will probably cut growth by 0.3 percent of GDP. |
While the surge in key leading indicators strengthens the case for a further rate hike in the near future, the absence of second round effects from the oil price spike and the decline in headline inflation in late 2005 argue against any haste. |