European Central Bank president Jean-Claude Trichet has hinted strongly that the bank's key interest rates will be raised in September.
The ECB's top officials left the main rate unchanged at 4% after a telephone meeting earlier today, but Trichet told journalists the bank was exercising 'strong vigilance' in the face of' inflationary risks.
The term has been used in the past to indicate that rates will be raised the following month. The ECB decision to leave the rate unchanged this month was widely expected, but there is a market consensus that the bank will raise it to 4.25% in September.
The bank's top officials deliberated by phone as is customary during the summer holiday period.
The ECB had already hinted that it wanted to raise rates in the autumn to avert a surge in inflationary pressure in the wake of an economic upturn in the euro zone.
