ECB raises interest rates to 1.5%

On the 7 July 2011 the European Central Bank pressed ahead with its second interest rate increase in 2011, in spite of the escalating eurozone debt crisis, but it failed to give any clear signal whether a further rise would follow.

In a move that put it further at odds with the US Federal Reserve and Bank of England, the main interest rate rose from 1.25% to 1.5%. Jean-Claude Trichet, President, cited 'upside risks' to inflation and the risk of price pressures becoming entrenched.

Despite the increase, the ECB President pledged to help Portugal, whose credit rating was slashed in the same week.

PressEurop, 8.7.11: ECB puts up a fight http://www.presseurop.eu/en/content/article/765931-ecb-puts-fight

ECB: Webcast, 7.7.11 http://www.ecb.int/press/tvservices/webcast/html/webcast_110707.en.html

ECB: Press Release, 7.7.11: Introductory Statement at Press Conference http://www.ecb.int/press/pressconf/2011/html/is110707.en.html

ECB: Statistics: Monetary operations: Key interest rates http://www.ecb.int/stats/monetary/rates/html/index.en.html

BBC News, 7.7.11: ECB raises eurozone interest rates to 1.5% http://www.bbc.co.uk/news/business-14061912

Deutsche Welle, 7.7.11: European Central Bank raises interest rate to 1.5 percent http://www.dw-world.de/dw/article/0,,15219038,00.html

EUObserver, 7.7.11: Europe's central bank gives helping hand to Portugal http://euobserver.com/9/32602

France24, 7.7.11: European Central Bank raises interest rates again http://www.france24.com/en/20110707-european-central-bank-raise-interest-rates-moody-bank-england

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