ECB expected to approve interest rate rise

The European Central Bank is expected to approve another increase in interest rates at its regular monthly meeting in Dublin today.

The bank's board is expected to announce an increase of a quarter of one percentage point, pushing its main lending rate up to 4%.

A further hike is also being forecast for the autumn due to strong economic growth in the euro-zone, particularly in Germany.

However, economists are predicting a slowdown in growth later this year and say that, while there is a risk of further interest-rate rises, Europe appears to be near the top of the rates cycle.