Europe may raise interest rates
The European Central Bank which has been keeping the interest rates unchanged in spite of spiralling crude oil prices and inflation rates across the European countries, is most likely to bite the bullet this week in the review meeting. The moderate increase expected to be announced this week, is more to send a signal about inflation concerns than anything else. Too much increase in interest rates may not be affordable since it can affect the demand in housing and automobile sectors which are already reeling under severe negative growth rates.