Slower money supply growth in the euro zone has reduced the fear of inflation. Sun climbed the money supply M3, consisting of cash, deposits up to two years and refinancing operations to 1.5 percent in January 2011 compared to the same month last year. Economists had expected an increase of 2.1 percent since December 2010, the money supply by 1.7 percent had increased.
This has won the European Central Bank (ECB) in its monetary and interest rate policy is a little leeway. The relatively low money supply growth should dampen the impact of inflation in the euro area in 2011. In January 2011, consumer prices rose by an average of 2.4 percent in the 17 euro countries.
The European Central Bank (ECB) aims at an inflation rate below two percent. If this goal is endangered, then the central bank raises its key interest rate is usually set. Thus, the policy rates is at 1.00 percent since May 2009. Since then, the ECB's key interest rate has important not touched. How
the monetary authorities decided to insist on price stability was seen in July 2008. At that time the key rate was increased from 4.00 percent to 4.25 percent due to high commodity prices threatened to build up to excessive inflationary pressures. The oil price had then scratched the mark of 150 dollars per barrel (159 liters).
had the relatively slow money supply growth in the euro zone, with a negative impact on the exchange rate of the euro against the dollar. Thus, the euro fell to 1.3830 in a few hours from $ 1.3725. Could then stabilize the European single currency and is currently at EUR / USD 1.3752 traded. The dollar cost 72.72 euro cents.
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