ECB lifts rates to 4%

The European Central Bank has raised its key interest rates by 25 basis points to 4%, taking rates in the eurozone to their highest level for six years. This latest increase means that interest rates have doubled in 18 months.

In his press conference announcing the rise, Jean-Claude Trichet, the president of the central bank, said on 6 June that monetary policy was "still on the accommodative side", which is generally accepted by analysts to signal that he will allow current growth to continue