The economy is growing quite strongly and they see a risk for price stability. They'll probably continue to raise rates as long as growth remains strong.

A hung parliament would be the worst possible result, it would be very negative for reforms which are so badly needed in Italy and it would be bad for prospects of fiscal consolidation as well.

The Federal Reserve is concerned with maintaining price stability and with employment and the economy. We know the labor market is strong and that the economy is doing well, but the CPI will address pricing pressure.

I think there is risk in the market. If there is weakening in the economy, then an earnings recovery gets pushed out further into 2002.

There's more upside risk on the dollar as the rate differential still attracts buyers. The U.S. economy is on a firm footing and the Fed may raise rates at least twice by March.

We think that with the risk of surprisingly tight U.S. monetary policy diminishing as the U.S. economy decelerates, and with the peso strong, the scales are tipped to a 50bp east at the January meeting.