ISEQ closes up despite ECB rate-increase threat

The ISEQ closed up 38.73 to 8045.04 today under the shadow of stark warnings from the European Central Bank which indicated it was ready to raise its key interest rates further after already raising them by a full percentage point to 3% since December.

While the ECB held its benchmark refinancing rate steady at 3% at its regular monthly policy-setting meeting today, the bank said it was prepared to raise the rate again in the coming months to keep a lid on inflation in the single currency area.

Meanwhile the financials responded with both the Bank of Ireland and Irish Life and Permanent down 15c and 3c to €14.80 and €20.10 respectively.

AIB , however, surged ahead with a 12c rise to €20.40. The Building materials group CRH also marched forward with an increase of 35c to €26.95, following on from the successful acquisition of Ashland Paving And Construction earlier this week.