EU's Almunia expects rates to tighten

Speaking at a conference organised by Nueva Economia, Joaquin Almunia, the EU economic and monetary affairs commissioner, intimated that he expects Eurozone interest rates to tighten further. He also warned that financial market volatility might carry the risk of political threats to European Central Bank independence.

He said it would be "very negative" if the current financial market turbulence affected efforts to keep prices stable. Speaking about the fallout from the US sub-prime crisis,