LONDON (AP) -- The European Central Bank raised its key interest rate to 1.5 percent to dampen inflation and hinted at more increases in coming months, even though they would add pressure on debt-ridden economies like Greece.
Thursday's hike, the second this year, was widely expected in markets as the ECB focuses on its responsibility to get inflation, which is running at 2.7 percent, below its target of just below 2 percent.
In his press briefing, ECB president Jean-Claude Trichet hinted that there would be further interest rate rises in the months to come but probably not next month.
He said the bank was "monitoring very closely" price developments - it traditionally uses that phrase to indicate that the tightening cycle is not over but that rates would not rise next month.
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