The next movement of the ECB

The ECB has always had inflation, or more accurately the ‘control of inflation’ as its only guiding light. The ECB raised rates by 0.25% on the 3rd of July and now it is time to wait and watch, to see what they will do next. While we don’t possess a crystal ball what we can do is take a brief look at the world and how some market movements may shape the next meeting of the ECB.

We are (worldwide) in an inflationary environment, in Vietnam inflation is at 25%! The highest it has been since the Vietnam War. The government there is trying to stop the importation of gold, because the Vietnamese have surpassed both China and India in the levels of gold consumption, in the first quarter of 2008 they imported over 38 tonnes. Why is this happening, and what does it have to do with the ECB?

The ‘Dong‘ is a fiat currency that was born in 1978, after the war, the currency that existed prior to that the French …

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