Rates set to rise to 4% next year

BETTER-than-expected growth figures in Germany for the first three quarters of 2006 have raised the prospect of ECB rates hitting 4% in 2007, pushing them to their highest level in four years.

Rates currently stand at 3.25% and it was expected that the 0.25% hike due next month could see the end of rate hikes for some time, as eurozone growth still struggled to get back to trend.

At worst some analysts conceded rates might to go to 3.75%, but hold at that.