ECB may raise rates to tackle inflation

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The Independent Online

The Eeuropean Central Bank (ECB) could raise interest rates as early as next month as it keeps a watch on inflation, a senior European policymaker signalled last night.

Echoing recent comments made by the ECB president, Jean-Claude Trichet, Jose Manuel Gonzalez-Paramo, an executive board member, said: "It's not about responding to higher oil prices but about preventing a second round of effects."

On the European rescue fund, he told Spain's El Mundo newspaper that using the bailout facility "should not be an attractive option".