ECB

ON SPECIALIST MARKETS

Managers are increasing their bets against the euro and forecasting falls of up to 20% in the single currency, even as the ECB continues to tighten monetary policy.

The European Central Bank has hiked its benchmark interest rate to 1.5% as expected.

F&C's director of global strategy Ted Scott on the changing role of the ECB during the debt crisis.

Debt-laden Greece could drag the whole eurozone into a "vortex of default, bankruptcy and an economic slump", Threadneedle's Leigh Harrison has warned.

The European Central Bank has indicated it will raise interest rates for a second time in four months at next week's meeting.

Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister's claims Greek government bondholders should contribute to a new aid programme.

The European Central Bank is set to raise interest rates next month in an attempt to dampen persistent inflation.

Germany is urging Greece to extend the maturity of its debt by seven years, clashing with the European Central Bank's view that forcing investors to take a loss could damage the eurozone.

Newton manager believes tightening policy now could be detrimental to growth.