European Central bank President Christine Lagarde has reaffirmed plans to raise the ECB's interest rates twice this summer while fighting widening spreads in the borrowing costs of different euro zone countries.
"These decisions underpin our previous commitments to adjust all of our instruments within our mandate, incorporating flexibility if warranted, to ensure that inflation stabilises at our 2% target over the medium term," Ms Lagarde told European politicians today.
It will hike again in September and may opt for a bigger move - a 50 basis point hike that would be its largest one-off increase since June 2000.
