The European Central Bank raised interest rates
08 July 2011
The European Central Bank raised interest rates for the second time in three months and signalled a further hike is likely this year. "We will continue to monitor very closely all developments with respect to upside risks to price stability," Trichet told a news conference after the announcement. Economists believe that the use of that phrase would signal a further rate rise in 2011, likely to be in the last three months of the year. The ECB also offered help to Portugal after ratings agency Moody's downgraded its debt to junk status earlier this week, pledging to keep providing it with liquidity regardless of ratings. On Greece, President Jean-Claude Trichet stuck to the bank's view that any rescue should not trigger a default or a payout in credit insurance, a stance that pushes the problem back to governments. Leaving the news conference, Trichet said he hoped next month's briefing would focus primarily on monetary policy rather than "other issues".