Euro rates Nothing like normal

The European Central Bank has decided that the eurozone economy is healthy enough to support higher interest rates. The market has priced in an increase from 2% to 2.75% by December 2006. But the European Central Bank (ECB) could well be more aggressive. Jean-Claude Trichet, the ECB president, has always been uncomfortable with low real interest rates. True, cheap borrowing stimulates demand in the short term. But Trichet is more concerned than Alan Greenspan, his US counterpart, about the dama...