ECB start raising rates by autumn - Kiel institute

GERMANY - The Kiel Institute for the World Economy IfW, one of Germany's six leading economic research institutes, said on Thursday it expected the European Central Bank to start raising rates in autumn 2002 in response to strengthening euro zone economic growth.

The institute predicted in its latest economic report that the ECB would raise rates to a "neutral" level of between four and 4.5 percent during the winter of 2002/2003. The ECB's benchmark interest rate is 3.25 percent at present.

The

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