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| Version 3 | Version 4 |
|---|---|
| Eurozone rates held steady by ECB | Eurozone rates held steady by ECB |
| (10 minutes later) | |
| The European Central Bank (ECB) has voted to keep eurozone interest rates on hold at 3.25% for November, a decision that was widely expected. | The European Central Bank (ECB) has voted to keep eurozone interest rates on hold at 3.25% for November, a decision that was widely expected. |
| Analysts now expect the ECB will raise rates by one quarter of a percentage point in December, as it continues to keep a close eye on inflation. | Analysts now expect the ECB will raise rates by one quarter of a percentage point in December, as it continues to keep a close eye on inflation. |
| Although eurozone inflation fell in October to 1.6%, the ECB has hinted further rate rises are needed. | Although eurozone inflation fell in October to 1.6%, the ECB has hinted further rate rises are needed. |
| ECB boss Jean-Claude Trichet said "strong vigilance" remained vital. | ECB boss Jean-Claude Trichet said "strong vigilance" remained vital. |
| 'Anchoring inflation' | 'Anchoring inflation' |
| "Acting in a firm and timely manner to contain risks to price stability remains essential to ensure that inflation expectations are kept solidly anchored," he said. | "Acting in a firm and timely manner to contain risks to price stability remains essential to ensure that inflation expectations are kept solidly anchored," he said. |
| Despite last month's inflation fall, the ECB is concerned that lower oil costs could refuel upward price pressures. | Despite last month's inflation fall, the ECB is concerned that lower oil costs could refuel upward price pressures. |
| It also sees soaring German and French business and consumer confidence as a further inflationary risk. | It also sees soaring German and French business and consumer confidence as a further inflationary risk. |
| The ECB which last raised rates last month - by one-quarter of a percentage point - has set an inflation target of 2% or below. | The ECB which last raised rates last month - by one-quarter of a percentage point - has set an inflation target of 2% or below. |
| December's expected one-quarter of a percentage point rise to 3.5% would be the sixth increase in eurozone rates during 2006. | December's expected one-quarter of a percentage point rise to 3.5% would be the sixth increase in eurozone rates during 2006. |
| UBS economist Stephane Deo said he expected the ECB to increase rates not just in December, but into the New Year. |