Euro Zone Rate Up 25 Points to 3.75 Percent, Unchanged in UK

The European Central Bank raised its key interest rate 25 points to 3.75 percent in an attempt to keep inflation under control and in the United Kingdom the Bank of England left rates unchanged at 5.25 percent.

ECB president Jean Claude Trichet said the decision was taken “in view of the upside risks to price stability over the medium term that we have identified through both our economic and monetary analyses”.

The quarter point rise was widely expected by analysts and takes the eurozone rate to its highest level in five-and-a-half years.

With Europe’s leading economies performing strongly, some analysts believe rates could hit 4 percent before the end of the year. Figures published last week actually showed a downward revision in January’s eurozone inflation from 1.9 percent to 1.8 percent - below the Ebb’s 2 percent target.