ECB to Raise Key Rate 3 Times More to 4.5 Percent in 2007, HSBC Says

(Bloomberg) -- The European Central Bank will
increase its main lending rate three more times in 2007, HSBC
Securities said, raising its previous forecast.

The ECB will probably raise its benchmark interest rate by
a quarter-point to 4 percent this month, followed by two more
increases in September and December, HSBC economists Janet Henry
and Astrid Schilo wrote in an e-mailed statement today. The bank
previously forecast interest rates to reach 4 percent.


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