ECB signals another interest rate hike

THE European Central Bank (ECB) signalled it would raise interest rates again next week as data showed inflation in June stabilised well above the bank’s target.

“We are strongly determined to secure that inflation expectation remain firmly in-line (with our expectations),” ECB President Jean-Claude Trichet told the European Parliament’s economic and monetary affairs committee.

“The current monetary policy is accommodative and...as I said we are in a state of strong vigilance,” he said.