A slight increase in shortterm real interest rates was however recorded following the strong pick up in economic activity .

Many believe the rapid increase in cancer rates is a result of environmental pollution from the last few decades of intense growth in China.

The prospect of higher interest rates in the US weakens the incentive for investors to pour capital into emerging economies indiscriminately.

For existing contracts , these changes in floating rates shall therefore not be captured in new business rates but only in the rates on outstanding amounts .

On both occasions , the increase in volatility was associated with the emergence of market expectations of a change in the key ECB interest rates .

Notes For the period from December 2003 onwards , the weight adjusted MFI interest rates are calculated using country weights constructed from a 12 month moving average of new business volumes . For the preceding period , from January to November 2003 , the weight adjusted MFI interest rates are calculated using country weights constructed from the average of new business volumes in 2003 .

The immediate increase in tax rates is only part of the story.

After more than two years of anticipating no change in interest rates , the money market was affected in November 2005 by expectations of an interest rate increase .

Chart D shows that there are differences in terms of the debt level of firms across euro area countries .

Households demand for

For existing contracts , these changes in floating rates are therefore not captured in new business rates but only in the average rates on outstanding amounts .

protecting oneself against adverse exchange rate movements

Cyclical factors also played an important role in boosting real interest rates .

However , Ireland did not participate in the general round of official interest rate increases in October .

In the developing world urbanization is playing a role in increasing rate of obesity.

And so there is an increase in people having to have their fillings replaced.

This rate of return is higher than any other state in the Union.

The gradual interest rate cuts throughout 2004 reversed the one off 300 basis point increase that had taken place in November 2003 after a sudden deterioration of investor confidence .

Given that China has been at it for 2.5 months, this implies that the equivalent of a 25 basis point increase in interest rates has already been injected into the market.

Changes in money market rates in turn affect other interest rates , albeit to varying degrees .

In 2000 , rate hike expectations prevailed , meaning that money market rates and hence bid rates and allotment rates tended to be considerably above the minimum bid rate .

In fact, there is a gradual and smooth decline in growth rates as debt GDP ratios increase 80 looks only trivially better than 100 .

Sources Reuters , Thomson Financial Datastream and ECB calculations .

The result could be a speculative attack by bond market vigilantes, triggering a sharp rise in interest rates, a dramatic fall in the dollar, or a combination of the two.

Overbidding occurred at times when banks expected an increase in the key ECB rates to take place in the prevailing maintenance period .

Orchestra The Buenos Aires Philharmonic is an Argentine orchestra based in Buenos Aires.

reducing inflation risk premia in interest rates , ...

The rise in government bond yields in the second half of the year was only partly reflected in MFI lending rate developments .

The extent of domestic and external indebtedness has significantly increased the vulnerability of the US economy to shocks , such as a decline in investor confidence or a sudden worsening of growth prospects . Concerns about the sustainability of these imbalances have also been heightened by the reappearance of a fiscal deficit since 2001 .

The January monetary data showed a significant increase in overnight deposits .

However , this fairly small overall increase in yields masks relatively marked swings within the year .

As a consequence , an increase in real GDP growth rates was expected to occur only in the course of 2003 .

Similar but more pronounced factors were responsible for triggering some instability in exchange rates and short term interest rates elsewhere , particularly in Spain .

Apart from an increase in real interest rates , two further factors explain the overall increase in bond yields and the steepening of the yield curve .

In the context of rising interest rates , the growth of household borrowing has shown signs of stabilisation in recent months , albeit at very high growth rates .

Falling prices mean a rise in the real value of existing debts and an increase in the debt service burden, owing to higher real interest rates.

In addition , on 8 June 2000 , interest rates were raised by 50 basis points .

Changes in money market rates in turn affect other market interest rates , albeit to varying degrees .

As a result , the spreads between long term bank lending rates and comparable market rates tended to narrow substantially throughout 2009 , reversing the sharp widening of spreads registered in the previous year .

hence , fiscal balances are relatively insensitive to changes in exchange rates .

As a result , some short term volatility in inflation rates is inevitable .

1 Based on annual average inflation rates in 1999 2003 .

With 20 million people still unemployed in the EU , progress in raising employment rates and reducing unemployment rates has so far been slow .

increase in long term Swedish yields reflected influences from rising international yields as well as a gradual improvement in the economic outlook in Sweden .

These global developments reflected the continuation of a trend which has been evident in bond markets since 1990 ( see Box 3 ) .