ECB 'unlikely to raise interest rates'

THE European Central Bank (ECB) is unlikely to increase interest rates in the short-term after the recent rise in oil prices, according to Bank of Ireland economist Dr Dan McLaughlin.

Oil prices hit a fresh high yesterday as Nymex crude rose to $54.62 a barrel as the euro strengthened against the dollar to hit $1.2615.

Mr McLaughlin said the US Federal Reserve is downplaying the effects on growth of high oil prices and has signalled another rise in rates in early November.