Math Blog- Interest Rates Are The Same in Europe

On March 6, 2008 two very big banks of Europe didn't reduce their interest rate. European Central Banks' interest rate is 4% while Bank of Englands' interest rate is 5.25%. European Central Bank and Bank of England didn't reduce the interest rate because they were afraid of inflation. inflation is when there is more money but the money has less value. that happened last year so Jean-Claude Trichet the president of the main banks for the European Union and England which consists twenty-seven nations. only Europe is doing this because the value of the euro is going up and that means more maoney. unlike what is happening in Canada, Bank of Canada has reduced their interest rate by 3.5%. In my opinion, Europe is doing the right thing because if there is an inflation the banks won't lose too much money.
http://edition.cnn.com/2008/BUSINESS/03/06/interest.rates.ap/index.html