order to combat rising inflationary pressures, monetary tightening remains In underway in the US. The Federal Open Market Committee has raised the target for the Federal Funds rate by ¼ point at each of its meetings since June 2004, to reach per cent in January 2006. This reflects a cumulative rise of 350 basis points. The ECB has also raised rates by 50 basis points since our last forecast, having held the interest rate on the main refinancing operations in the Euro Area stable at 2 per cent since June 2003. We have.
