ECB member hints at further rates rise

A member of the European Central Bank (ECB) governing council has been quoted as saying that interest rates are likely to continue…

A member of the European Central Bank (ECB) governing council has been quoted as saying that interest rates are likely to continue on an upward trend in the euro zone.

"In this situation, the direction of interest rates is upwards," Erkki Liikanen told Helsinki news weekly Suomen Kuvalehti.

Mr Liikanen, who is also governor of the Bank of Finland, declined to say what the next decision of the ECB would be with regards to interest rates. However, the ECB is widely expected to raise interest rates at its next meeting on June 8th.

He said the economy needed to be followed very closely and decisions made using the latest information.

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"That's why I never want to say anything that is binding," the weekly quoted him as saying.

The magazine said Mr Liikanen had referred to indicators showing the euro zone economy is getting stronger, inflation risks are growing and interest rates were still low.