Boost in business confidence

28th June 2006, Comments 0 comments

28 June 2006BRUSSELS - Speaking earlier this week to the UK's Financial Times, Belgian National Bank Governer Guy Quaden cited Belgium's "new and spectacular" rise in the country's business confidence index as "very encouraging news for Belgium and probably also for the eurozone".Quaden went on to suggest the European Central Bank was deliberately keeping open the possibility of an earlier-than-expected rise in eurozone borrowing costs.Most economists expect a rise after the summer break, but Quaden believ

28 June 2006

BRUSSELS - Speaking earlier this week to the UK's Financial Times, Belgian National Bank Governer Guy Quaden cited Belgium's "new and spectacular" rise in the country's business confidence index as "very encouraging news for Belgium and probably also for the eurozone".

Quaden went on to suggest the European Central Bank was deliberately keeping open the possibility of an earlier-than-expected rise in eurozone borrowing costs.

Most economists expect a rise after the summer break, but Quaden believes it may come as soon as August.

Belgium is a small economy, equal to a little over 10 percent of the eurozone's largest, Germany.

Nevertheless, the business confidence indicator is kept under scrutiny at the European Central Bank because of Belgium's strong trade links with her larger eurozone partners.

Belgium's central bank has recently raised its forecast for economic growth for 2006 to 2.5 percent, which exceeds the predicted eurozone average.

[Copyright Expatica News 2006]

Subject: Belgian news

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