Into the Euro-zone

Axel Weber,President of the Deutsche Bundesbank,the German central bank,and a member of the European Central Bank's Governing Council,has been reflecting on the ECB's July .25 increase in its key interest rate.Our argument was,we saw a substantial rise in the risk of inflation,Mr.Weber said.The move we did has to be seen against the substantial inflation risk.We've largely predicted a weaker second quarter in Europe,because the first was so strong.We see a weak spot in the summer-somewhat of a dry spell,but growth will be reasonable.Things will change maybe not until next year,Mr.Weber speculated.