A crucial key element for the future growth are the Interests rate. The importance of the impact in whether the ECB or BOE should increase or decrease the interests rates fundemental during this period of a recovering economy. The news is which is not surprising is that both ECB and BOE kept the their rates steady (1% ECB, 0.5% BOE)
on Thursday at the news conference which took place in the wonderful city of Venice, the ECB President Trichet announced the unchanged interests rate at 1%. The Wall Street Journal talked about the issue on its second page of the printed copy on Friday. The journal wrote that Trichet transimts stabilizing signs, but warns on being reliable on this fact. It also stated analysts' opinion who think that the interests rate will not raise before the first quarter of 2010.
the CNBC site published the news on Thursday. the approach taken is a bit different. It states that another competitor channel of information, which was a poll made by reuters that 82 analysts declared that expectations were met by Trichet's decision. Surprisingly, CNBC was the only source saying that Reserve bank of Australia (member of G20) was the only and first central bank to raise rates after the recession. Of course, CNBC gave many experts analysts opinion in regard, which in fact the way generally it conducts its news by giving opinions from experts. In addition, it shows that demand from banks to the ECB fell to 75 billion from 442 billion in June, which made declare Trichet that a hope that banks are starting to stay on their legs and searching for reliable ways to get cash instead on depending just from ECB's cash. Trichet answered also a question regarding euro's role as a pricing currency, he said "we are not campaigning for international use of Euro".
In conclusion, my analysis is that the Wall Street Journal's article covers the whole situation, as well as the BoE decision. Therefore giving also a more opinionated view of the situation from the writer and make it interesting to read. Wheras on the CNBC article on the internet it clearly shows a more analysts' view having then no view from the writer.
References:
- The Wall Street Journal (Printed source)
- www.cnbc.com/id/33221133
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This is better than last week. You have identified the new story and compared two sources. Was there any bias evident from the use of language? And what is your opinion about the interest rate rise? Do you think rates should rise or not? I need to see some of your own opinion about the news story. 5.5/10
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