ECB interest rates hike likely as German growth hits 10-year high

GERMAN growth has reached its highest point for 10 years and analysts are predicting it could go even higher than expected next year.

However, this is increasing the likelihood that the ECB will have to raise interest rates, increasing problems for Ireland and the other weak euro-area countries.

It is also adding urgency to the debate on reducing the interest rate charged on the EU’s loan to Ireland and on the need to agree a mechanism for allowing Greece, especially, to default.