No interest rate rise this month

Interest rates for Irish mortgage holders are set to remain static after the European Central Bank kept its key interest rate unchanged at 1.5% today.

ECB President Jean Claude Trichet said eurozone inflation is still a cause for concern.

But speaking at a press conference this afternoon he gave given no indication that another interest rate hike is on the cards for next month.

"Data and survey releases for the second quarter point towards ongoing real GDP growth, albeit, as expected, at a slower pace," Mr Trichet said.

"The underlying positive momentum of economic growth in the euro area remains in place and continued moderate expansion is expected in the period ahead."

The decision comes as the President of the European Commission urges European Union leaders to reinforce their financial defences.

Jose Manuel Barroso has written to all 27 members of the EU council warning them the debt crisis is spreading beyond the eurozone, and calling on them to quickly strengthen the European Financial Stability Fund.