News Digest: The European Central Bank (ECB) has moved a step closer to raising interest rates, although a meeting of its governing council decided to keep rates on hold yesterday.

Explaining the latest decision ECB president Jean-Claude Trichet strengthened the tone of the bank's inflation concerns. "Over the short term, annual inflation rates may again increase somewhat, reflecting in particular renewed increases in energy prices and some base effects."

Mr Trichet said indirect taxes and government administered prices were also likely to add to inflation. "The tone of his remarks suggests that a consensus is building on the ECB's governing council to implement another quarter point rate hike at next month's policy meeting," said Irish Intercontinental Bank economist Austin Hughes.

Venture capitalists 'should engage early'

Financiers and venture capitalists should get involved in start-up companies at an early stage, an Enterprise Ireland executive said yesterday.

Speaking at a showcase for the 75 start-ups it worked with last year, Kevin Sherry, head of Enterprise Ireland's high-potential start-up unit, called on venture capitalists and other financiers to give extra support to such firms.

Both Mr Sherry and financiers said that high net worth individuals typically invest in property rather then start-ups. Of the 502 companies that Enterprise Ireland has supported in the last 12 years, 74 per cent were still trading successfully.