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| Version 1 | Version 2 |
|---|---|
| Euro interest rates still at 4% | |
| (9 minutes later) | |
| The European Central Bank (ECB) has kept eurozone interest rates on hold at 4% following its latest meeting. | The European Central Bank (ECB) has kept eurozone interest rates on hold at 4% following its latest meeting. |
| Rates in the region have doubled in 18 months as the central bank has sought to keep inflation in check while economic growth picks up. | Rates in the region have doubled in 18 months as the central bank has sought to keep inflation in check while economic growth picks up. |
| But the decision is expected to be only a temporary reprieve, with more rises expected later this year. | But the decision is expected to be only a temporary reprieve, with more rises expected later this year. |
| The prospect of higher interest rates pushed the euro to recent highs against the US dollar and Japanese yen. | The prospect of higher interest rates pushed the euro to recent highs against the US dollar and Japanese yen. |
| More rises expected | |
| The ECB is expected to prepare the markets for further interest rate rises at its news conference shortly. | |
| Analysts will be watching to see what phrases President Jean-Claude Trichet uses about inflation to gauge the timing of the next increase. | |
| The central bank uses specific language to guide the market on the direction of interest rates, which are now at their highest level in the 13-member bloc for six years. | |
| If the words "strong vigilance" are used, the market will price in a rate increase next month. | |
| With the region enjoying a recovery in economic growth, observers say the ECB is likely to want to get interest rates back up to the level of other industrialised nations, such as the UK and the US, in order to curb excessive price rises and wage inflation. |