Trichet signals September hike

The European Central Bank (ECB) today left interest rates unchanged at 4%. In a surprise press conference after the announcement, Jean-Claude Trichet, the president of the central bank, dropped a strong hint that rates will rise at the next meeting in September.

Trichet signalled the likely move in September with a reference to the need for "strong vigilance" against inflationary pressure. In the current tightening cycle, which started in late 2005, Trichet has used the "strong vigilance" phra