Recovery in Europe seems to be rolling - by Carter Dougherty
Unemployment in the euro zone dropped to its lowest level in nearly five years in May, while a closely watched survey of business intentions leapt, data released Monday showed, adding fodder to the European Central Bank's case for raising borrowing costs to head off inflation. Given what appears to be a significant acceleration in the economic recovery, bank watchers are now hedging their bets as to whether the next rate increase will come sooner than expected - as early as Aug. 3, perhaps.
But that would require weaning financial markets off their expected diet of regularly spaced quarterly increases accompanied by clear verbal cues one month in advance - a path the bank has followed now for nine months.
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