ECB president hints at interest rate rise next month

European Central Bank president Jean-Claude Trichet has hinted interest rates may rise next month to fend off inflation pressures, reports Bloomberg.

The ECB today left interest rates at their record low of 1% despite inflation being above the group's 2% imposed target. Trichet says: "An increase of interest rates in the next meeting is possible. The ECB is prepared to act in a firm and timely manner." On the back of Trichet's remarks the euro reached highs of 0.9% against the dollar, the highest rise since last Novemeber. Trichet also has the backing of board member Juergen Stark who last week said the ECB will act if needed to prevent soaring commodity prices driving up price expectations. However, other board members are w...