Rise in interest rates on the horizon

A leading economist says the European Central Bank is attempting to calm markets by giving a strong indication on future interest rate hikes.

In a Spanish newspaper, the ECB's Philip Lane said interest rates in the euro area will go up by 0.25 per cent in July and again in September. There had been calls for rates to rise by 0.5 per cent as part of efforts to curb soaring inflation in Europe.