ECB ‘stands ready’ to raise rates

THE European Central Bank (ECB) yesterday warned borrowers to expect higher loan repayments in the short term after it said it was ready to raise interest rates.

Speaking after the bank left interest rates on hold for the 29th month in a row, ECB president Jean-Claude Trichet said the bank “stands ready at any time” to push rates up to combat higher inflation.

Economists said Mr Trichet had raised expectations of an interest rate hike and that the bank was likely to deliver on its hints before too long.