Trichet defends interest rate rise

European Central Bank president Jean Claude Trichet is insisting that today's interest rate hike does not spell the start of a series of increases.

European Central Bank president Jean Claude Trichet has defended today's interest rate hike, saying that it does not spell the start of a series of increases.

The bank upped its key lending rate by a quarter of 1% earlier, a move set to hit around 600,000 Irish home owners, and those with personal loans or credit card debt.