Economists warn of higher rates

STRONG recovery indicators from Germany brings higher Eurozone interest rates closer, economists warned yesterday.

The markets expect rates to be increased 0.5% to 2.75% by year end as the cautious European Central Bank moves to keep inflation in check.

Some economists expect rates to rise by 0.75%, bringing the total rise to 1% since the ECB made its first 0.25% hike in December.