Interest accrued under the General Purpose segment of the Industrial Development Fund is credited to that Fund.

They are pressuring the ECB to raise rates sooner than later.

The Court awarded Canadian 575,000 in damages, plus prejudgment interest.

Further haircuts on private claims would also be needed, starting with a moratorium on interest payments.

Indeed, the interest rate on inflation protected bonds has now become 0.5 , even for a five year maturity!

But the ECB holds firm against cutting indeed, after the Governing Council s December meeting, ECB President Jean Claude Trichet said that some members were in favor of raising rates.

The European Central Bank should reverse its mistaken decision to hike interest rates.

Second, China s central bank still controls interest rates by enforcing a roughly three percentage point spread between deposit rates and lending rates.

In the case of Greece, the interest payments apply to government debt held by Greek individuals and institutions, as well as to government debt held by the IMF, the European Central Bank, and other foreign lenders.

This is not to argue, of course, that the ECB should cut interest rates now.

Unless the ECB picks up the pace of interest rate increases now, the goal of interest rate neutrality may not be politically feasible, jeopardizing achievement of the bank s price stability goals.

As a result, the central bank s lower interest rates do not translate into increased spending on interest sensitive investment and consumption.

This obviously depends in part on the amount of debt outstanding, the interest rate, and the country s growth prospects if it continues to pay.

With the ESM and ECB capping interest rates on government bonds, countries will have as much time as they need and they will need plenty to reduce their debt burdens to manageable levels.

Pressures are mounting on the ECB to raise interest rates and Berlusconi and Co. s attacks are as much as an attempt to forestall future rate hikes as to get the ECB to loosen its monetary policy.

Banks have bought only short term assets, mainly with maturities of about three years (to match their liabilities with the ECB).

But higher energy prices, by themselves, will not cause the ECB to pull the interest rate trigger.

The same may happen in Europe, especially given the ECB s refusal to cut interest rates.

The interest rates projected by the CBO assume that future inflation will be only 2.2 .

Fear over the growth effects of the European Central Bank s 2006 rate increases is based on confusion between real and nominal interest rates.

The central bank would lower interest rates households would spend in anticipation of lower taxes and business confidence would rise.

The World Bank s traditional instruments have been (and still are) low interest loans, interest free credits, and grants.

If it goes too slow, the ECB has earned sufficient credibility as an inflation fighter to make up for it in the future with little if any economic or political cost.

Inflation implies higher long term interest rates until markets regain confidence in the central bank.

When the central bank succeeded, it lowered those rates and the economy bounced back.

With a debt to GDP ratio of 200 , the higher interest rate would eventually raise the government s interest bill by about 4 of GDP.

However, this is no longer applied since the central bank started changing rates by 0.25 percentage points on October 19, 2010 (which was a rate increase).

And global investors continue to exit the eurozone in droves, shifting countries liabilities to taxpayers and the ECB s balance sheet.

This would be bad news for the German economy, which could delay possible ECB interest rate hikes.

Interest rates will have to be slashed, and the ECB will have to follow up with large scale asset purchases like those recently announced by the Swiss National Bank.

She remained, to the end, hostile to central bank independence, regularly rejecting the advice of her chancellors to allow the Bank of England to control interest rates.

The European Central Bank s policy rate stands at 0.75 , while the eurozone s annual inflation rate is 2.5 .

The ECB s announcement of a new program to purchase sovereign bonds has lowered market interest rates.

According to the followers of Knut Wicksell, the central bank must keep the market rate of interest near the natural rate of interest.

That would not happen if the ECB announced and demonstrated its determination to bring down interest rates, whatever it takes, for a significant period of time.

Typically, one looks to the head of the central bank to serve as a bulwark against political pressure to push down interest rates and raise inflation.

After all, a strong economy makes it easier for the ECB hawks to sell rate hikes.

Since the interest rate set by the ECB is now less than 1 , there is little difference between its current monetary policy and what the Bank of Spain would do if it could set its own interest rate. But when the euro zone starts to recover, the ECB might choose to raise the interest rate before a higher rate would be appropriate for Spain, which could exacerbate Spanish unemployment.

The same World Bank study estimates that total claims accruing to insurers in Japan might ultimately cost these companies 33 billion.

To stem the outflow of dollars, the central bank may well be forced to raise interest rates.

When demand in Germany and France was quite weak early in the last decade, the ECB reduced interest rates sharply.

Only the eurozone seems to be bucking the trend, as the European Central Bank has allowed a rise in the short term interest rate.

Further procrastination on interest rate normalization by the ECB could well lead to a nasty bout of inflation.

The truth is that ECB would not be in its current predicament if the central bank had reached the 4.75 or even 5 level by now.

French politicians have been the most aggressive in putting political pressure on the ECB to relax its interest rate normalization policy.