ECB will keep rates on hold, economists

INFLATIONARY pressure in the wake of the oil price shocks could put added pressure on the European Central Bank to raise rates in the months ahead.

However, Jim Power of Friends First believes the ECB will resist that pressure if the inflationary figures worsen as a result of oil going over $60 per barrel in the past week.

While a hike in ECB interest rates might be a natural follow on from the oil price hikes, economists doubt Europe's central bank will be forced to act in the short term.