European Bank Raises Borrowing Rate

11 December 2006

FRANKFURT: The European Central Bank has raised the eurozone interest rate to 3.5%, the sixth rise in the last twelve months.

It has made the widely expected move in an effort to keep the lid on inflation as the European Union's economy expands and borrowing levels rise.

The ECB has set a 2% inflation comfort zone and although the annual rate stood at 1.8% in November, bank president Jean-Claude Trichet has warned that there is "no room for complacency" over price rises.

Data sourced from BBC Online; additional content by WARC staff