Canada does not raise interest rates

 Bank of England European dilemma
Bank of England and European Central Bank will be held from 13 to discuss interest rates, respectively, and announced the short-term interest rates. Recovery of the European economy is still weak, both the central bank is widely expected to maintain the current interest rates unchanged, but the decision is expected to encounter more and more controversial. Meanwhile, the U.S. Federal Reserve monetary policy meeting in December last year, records show, the members of its monetary policy, there are big differences.

Many analysts said that the British are still at a high rate of unemployment, the government's fiscal austerity plan, early in January to increase the corporate tax rate and consumption tax rates and other factors will put pressure on the British economic recovery, the current interest rate is too too early.

However, the latest Office for National Statistics data showed the UK in November 2010 the Consumer Price Index (CPI) was 3.3%, reaching the highest level since May. Bank of England Monetary Policy Committee is expected, inflation could continue to rise in the coming months, and in the spring 2011 high of 4%.

Eurozone data released last week showed third quarter of the region, seasonally adjusted GDP growth in the final value of 0.3%, slightly down from expected growth of 0.4%. Eurostat is expected in 2011 and 2012, the euro zone GDP will grow 1.6% and 1.7%, the unemployment rate will remain high at 9.7%.

foreign media for 9 released a survey of 71 economists, most people expect the European Central Bank in the fourth quarter of 2011, interest rates will remain unchanged, interest rates in the fourth quarter, 25 basis points.

released under the 11 Federal Reserve monetary policy on Dec. 14 meeting, Kansas City and Dallas Fed President vote calls for a higher discount rate by 25 basis points to 1%, while the short-term emergency loans to banks charge each with veto power of the Federal Reserve Board interest rate rejected the proposal.

meeting minutes shows that in the December meeting, most Fed officials believe that, due to high unemployment, low inflation, the Fed needed to support the economy. Therefore, the Fed voted overwhelmingly to keep interest rates near zero to support the level of 600 billion U.S. dollars while maintaining the purchase of government bonds the same scale.

But Fed officials
against such loose monetary policy. Monetary policy in 2010, has the right to vote in Kansas Fed Xi Huoen that the economic recovery is gaining momentum, concerns about interest rates remain so low could lead to rising inflation expectations that the Federal Reserve began tightening monetary policy should be. Monetary policy in 2011 has the right to vote that the United States Dallas Fed President Fisher bond purchase plan does not need.