AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.00 Decreased By ▼ -0.53 (-0.41%)
BOP 6.76 Increased By ▲ 0.08 (1.2%)
CNERGY 4.50 Decreased By ▼ -0.13 (-2.81%)
DCL 8.70 Decreased By ▼ -0.24 (-2.68%)
DFML 41.00 Decreased By ▼ -0.69 (-1.66%)
DGKC 81.30 Decreased By ▼ -2.47 (-2.95%)
FCCL 32.68 Decreased By ▼ -0.09 (-0.27%)
FFBL 74.25 Decreased By ▼ -1.22 (-1.62%)
FFL 11.75 Increased By ▲ 0.28 (2.44%)
HUBC 110.03 Decreased By ▼ -0.52 (-0.47%)
HUMNL 13.80 Decreased By ▼ -0.76 (-5.22%)
KEL 5.29 Decreased By ▼ -0.10 (-1.86%)
KOSM 7.63 Decreased By ▼ -0.77 (-9.17%)
MLCF 38.35 Decreased By ▼ -1.44 (-3.62%)
NBP 63.70 Increased By ▲ 3.41 (5.66%)
OGDC 194.88 Decreased By ▼ -4.78 (-2.39%)
PAEL 25.75 Decreased By ▼ -0.90 (-3.38%)
PIBTL 7.37 Decreased By ▼ -0.29 (-3.79%)
PPL 155.74 Decreased By ▼ -2.18 (-1.38%)
PRL 25.70 Decreased By ▼ -1.03 (-3.85%)
PTC 17.56 Decreased By ▼ -0.90 (-4.88%)
SEARL 78.71 Decreased By ▼ -3.73 (-4.52%)
TELE 7.88 Decreased By ▼ -0.43 (-5.17%)
TOMCL 33.61 Decreased By ▼ -0.90 (-2.61%)
TPLP 8.41 Decreased By ▼ -0.65 (-7.17%)
TREET 16.26 Decreased By ▼ -1.21 (-6.93%)
TRG 58.60 Decreased By ▼ -2.72 (-4.44%)
UNITY 27.51 Increased By ▲ 0.08 (0.29%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,450 Increased By 43.4 (0.42%)
BR30 31,209 Decreased By -504.2 (-1.59%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

Market concerns over an early ECB interest rate hike eased on Wednesday on signs that inflationary pressures are moderating in the eurozone and dovish comments from an European Central Bank policymaker. Money supply growth slowed for the first time in four months, to a 6.4 percent annual rate in February from 6.6 percent the prior month, the ECB said in its M3 latest report. Analysts had expected M3 to advance by 6.7 percent.
Growth in private sector loans, which has been increasingly robust on the back of historically low official interest rates, also eased to 7.2 percent from 7.3 percent annual rate in January with house loans and home purchase loans holding steady.
In Italy, meanwhile, producer prices posted their largest gain in four years in February advancing at a 4.7 percent annual rate. But once high energy costs were stripped out, analysts said the inflationary data were tame.
The latest data take some pressure off an increasingly hawkish sounding ECB to consider raising its official refinancing rate, which has been kept at an historic low of 2 percent since June 2003, analysts said.
"It gives the ECB some additional time to see a clear broadening of economic recovery before it does anything on rates," said Michael Schubert, economist at Commerzbank in Frankfurt.
"So far, monetary developments have been a cause for concern. But these new figures give a slight sign of relief."
CALM WORDS FROM LIIKANEN: This view was reinforced by ECB Governing Council member Erkki Liikanen, who said he was comfortable with inflationary developments in the 12-nation euro zone.
"At the moment, the inflationary pressures are quite well in check," he said at a news conference.
"At some point, the interest rate level will be reviewed but I cannot tell you when."
Expectations for price stability are being built into wage and price developments, he said. Additionally the euro's advance is helping dampen price pressures, giving the ECB some leeway on rates.

Copyright Reuters, 2005

Comments

Comments are closed.