ECB to signal June interest rate rise

THE European Central Bank (ECB) is expectedto prepare the grounds for another interest rate rise next month at its monthly meeting, which takes place in Dublin today.

There is little prospect of ECB chiefs springing an interest rate hike today but president Jean Claude Trichet will use the opportunity to signal a 0.25% increase in borrowing costs at its June 6 meeting. That increase will be the eighth in 18 months and leave rates at a five-year high of 4%.

The ECB’s meeting in Dublin is just the second time it has met in Ireland, the last being June 2001.