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policy rates even more important in 2011

ECB key rate from March 2006 to February 2011.

policy rates in 2011 comes into focus in financial markets. So it has become more likely, raising the European Central Bank (ECB) will soon have the key rate from 1.00 percent to 1.25 percent. This is a running out of control inflation . In January 2011, consumer prices climbed in the euro zone to 2.4 percent compared to the same month last year.

Thus, the actual inflation rate is above the ECB's target of two percent. In addition, the inflation forecast published in 2011, ECB +1.8 percent as unrealistic. We have rising commodity and energy prices, the biggest price driver. Add to this the collective bargaining in Germany. In the wake of higher wage settlements could lead to so-called second-round effects on inflation.

Although the short-term rate hike by the ECB could almost barely restrain inflation, the increase in policy rates would send a psychological signal to the markets. The credibility of the European Central Bank is to deliver price stability as the comparatively high. In particular, if the ECB and the Federal Reserve (Fed) compares.

The policy rates shows the last five years, a rise of 2.25 percent to 4.25 percent between February 2007 and August 2008. In the course of Financial and economic crisis lowered the key interest rate by the monetary authorities in several large rate hikes to 1.00 percent by May 2009. As quickly, the ECB had lowered its benchmark interest rate never before.

After the interest rate trend is already spent 22 months at 1.00 percent, market participants speculate about an impending increase. Some economists expect the policy rate would have raised before the summer of 2011. Most experts assume, however, by an increase in during the third quarter 2011.