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It now seems likely that they will continue to rise, tending to 2% before year's end.

Once the ECB starts raising or lowering rates it is quite capable of doing it a a quarter point per quarter. See this chart from my EONIA diary:

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Apr 7th, 2011 at 04:39:40 PM EST

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