ECB signals higher rates ahead - by G. Thomas Sims
FRANKFURT: The European Central Bank on Thursday signaled that it would lift borrowing costs as early as June to prevent a robust European economy from stoking inflation, even as a surging euro begins to crimp corporate profits and slow exports.
Jean-Claude Trichet, the bank's president, left interest rates unchanged at 3.75 percent Thursday, but he suggested he would lift rates in June for the eighth time since 2005 as a widespread economic recovery fuels the risks of rising prices. The indication came as the Bank of England lifted its rate to 5.5 percent, a fourth increase since August, in an effort to tame the roaring British economy.
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