ECB raises rates to 1.5%

Really2

http://www.bbc.co.uk/news/business-14080021

The cost of borrowing for debt-laden Portugal, the Irish Republic and Italy hit new highs on Friday.

Greek debts also sold off, reversing a recent rally on hopes of a new rescue.

Financial markets were reacting to the European Central Bank's decision to raise interest rates, as well as political developments in Italy.

As stated before if a rate rise is viewed as a bad thing by the markets for economies it can have the opposite to the desired effect.

The euro has devalued after the rate rise, goes to prove what I have said for a long time, it will only work in curbing inflation if the economy (economies in the case of the euro) can cope with it.
So now they have a higher base rate and a weaker currency, not such a strong tool to curb current inflation as many on here will have you believe.

neverdespairgirl

My mother's theory is that economic theory now is set by what happened in the 1930s in different countries. Germany suffered runaway inflation, and that's their nightmare scenario. Ours is unemployment.