LONDON, April 19, 2011 /PRNewswire/ -- The European Central Bank will follow up its recent quarter point rate rise with one more but will then put its rate on hold.
However, in his monthly Global Forecast programme, Robin Bew at the Economist Intelligence Unit adds that weakness in eurozone economies means the euro will not surge longer term against the dollar.
Bew tells financial broadcaster http://www.cantos.com that austerity budgets in Europe, for example Portugal, will crimp growth and could hurt tax revenues which may exacerbate budget difficulties. Lower consumer confidence will hit the region with a negative impact on sales.
The interview and transcript are available now on http://www.cantos.com/eiu.
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SOURCE Economist Intelligence Unit