Releases Video on EBC Interest Rate Hike

Canary Wharf, London (PRWEB) April 10, 2011, the home of Saxo Bank’s trading commentary, financial research and analysis, has released a video discussing the recent interest hike and the bailout of Portugal.

The European Central Bank (ECB) raised its benchmark interest rate by 25 basis points and although expected, it was the first increase in almost three years. It came less than a day after Portugal asked for help to deal with its debt. Now the focus is on what weighs more heavily upon the shoulders of the ECB – the threats to economic growth of more rate increases as Greece, Ireland and now Portugal continue their financial struggle or the risks of surging costs leading to entrenched inflation. In the video, Mads Koefoed, macro strategist at Saxo Bank discusses these issues.

Firstly, Mads discusses the comments made by the ECB president after the interest rate was raised. The ECB had originally stated that there would be another four further interest hikes this year, but in his comments after the 25 basis points hike, the president said that people should not except this hike to be one of a series of hikes. Mads believes that four more hikes would not be the best idea, as the economy is not that strong, and it is only really the German economy that is supporting the Eurozone. Mads predicts another hike will be announced around June or July 2011 as inflation trends higher, but it is not yet at a level where the ECB will have to raise rates every time they meet.

Next Mads discusses the recent bailout of Portugal. The bailout has been expected for a while, and while there are no official figures as yet, it looks as though Portugal could be asking for around 80 billion Euros, which is about the same amount as Ireland received. Mads comments that the ECP is sending a strong signal that it didn’t seem to care about Portugal as it raised interest rate even though it was evident that Portugal was going to require bailout. The ECP’s main focus is inflation, and as long as it is only small economies that aren’t doing so well in Eurozone, the ECP are unlikely to bother. However, Mads points out that they may start to pay attention if countries like Spain begin to suffer.

About is the web portal home of Saxo Bank’s trading commentary, financial research and analysis.’s diverse contributors who range from macroeconomists to trading advisors, all strive to deliver insightful, enlightened commentary on trading in the financial markets – particularly on forex ( and forex trading (, equities, stocks and commodities. also publishes periodical model-based research and analysis to help longer-term traders allocate funds between and within asset classes.’s commentary and analysis is delivered in text and video via the website, where users can watch forex videos ( and receive information on products such as CFDs (

The website is also embedded in all Saxo Bank’s trading platforms. Users can also subscribe to content from, or from their favorite contributor, via RSS feed or via Twitter.

PR contact:

Kasper Elbjorn

Head of Group Public Relations

Saxo Bank

40 Bank Street

Canary Wharf


E14 5DA

+45 3977 4300

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