EUROPEAN Central Bank executive board member Gertrude Tumpel-Gugerell has said “strong vigilance” is necessary to keep a lid on inflation — indicating policy makers may raise interest rates next month.

European Central Bank executive board member Gertrude Tumpel-Gugerell said Europe needs to develop equity financing for small firms, to help increase Europe's potential growth rate.

GERMAN business confidence unexpectedly advanced in January to a three-year high, suggesting executives in Europe’s largest economy are optimistic they will overcome the effects of the euro’s appreciation.