ECB raises eurozone interest rates to 1.5%

 　　The European Central Bank (ECB) has raised interest rates to 1.5% from 1.25% in an attempt to cool inflation in the 17-nation eurozone.

　　ECB president Jean-Claude Trichet said that inflation, now 2.7%, was likely to remain "clearly" above the ECB's 2% target over the coming months.

　　He said inflation would be monitored "very closely", seen as a signal that rates are likely to rise further.

　　The latest increase was the second rate rise since April.

　　Earlier on Thursday, the Bank of England kept UK rates at a record low of 0.5%. Rates have been held at this level for more than two years.

　　The ECB's rise was widely expected after Mr Trichet indicated last month that such a move was likely.

　　He told a news conference after the rates announcement that recent economic data had showed a slowing in eurozone growth.

　　Continue reading the main story

　　Analysis

　　Jonty Bloom

　　Business correspondent, BBC News

　　If German workers start to think that they are entitled to some of the rewards for that performance and start demanding wage rises to make up for rising prices, inflation may well become established in the eurozone.

　　The ECB is acting¹ now to try to stop that happening, regardless of the cost to Athens, Dublin and Lisbon.

　　For countries like the Irish Republic, Greece and Portugal; struggling under a mountain of debt, having to be bailed² out and facing seemingly endless austerity measures; an increase in the cost of borrowing is about as welcome as an invitation to inspect the guillotine blade a bit more closely.

　　But the ECB has to look at the whole eurozone and make its decisions based on that. And it has decided³ that fighting inflation is a far, far better thing to do.

　　A tale of two cities

　　However, there were "upside risks" to inflation in the medium term because "the underlying⁴ pace of monetary⁵ expansion is continuing to gather pace," he said.

　　Higher prices

　　Mr Trichet said inflation would remain above target over the next few months largely because of higher energy and commodity prices.

　　The ECB's primary role is to keep inflation low by setting interest rates for the 17 countries that use the euro.

　　But there are concerns that rising rates will increase borrowing costs, adding to pressure on countries such as Greece and Portugal.

　　Asked if the rate rise would do more damage the eurozone's periphery⁶ economies, Mr Trichet said that "the entire continent would benefit from maintaining price stability and confidence".

　　He said that confidence was the "solid soil" on which the eurozone would build, despite some countries expanding at a faster pace than others.

　　The continuing strength of Germany's economy was underlined this week with figures showing that manufacturing orders rose 1.8% in June. Many analysts⁷ had forecast a fall.

　　Meanwhile, Mr Trichet joined in criticism of the credit ratings agencies which followed Moody's decision to downgrade Portugal's debt to "junk".

　　On Wednesday German Finance Minister Wolfgang Schaeuble said he believed limits should be put on the rating agencies' "oligopoly".

　　Mr Trichet added his weight, saying: "It is also clear that a small oligopolistic structure is not what is ... desirable at the level of global finance."

　　He said that despite Moody's downgrade the ECB would support Portugal by continuing to accept the country's debt as collateral⁸ in return for funding.

　　Default

　　"We have decided to suspend the application of the minimum credit rating threshold... This suspension will be maintained until further notice," he said.

　　The ECB has played a central role in the debt crisis by keeping banks afloat with emergency cash.

　　But he repeated firmly that the ECB would not accept a country's bonds as collateral if it had defaulted on its debts.

　　There has been speculation⁹ about whether Greece is close to defaulting, with ratings agencies speculating about the definition of a 'default'.

　　Mr Trichet said: "We say 'no' to selective default or credit event."(本文由在线英语听力室整理编辑)

1 acting   

n.演戏，行为，假装；adj.代理的，临时的，演出用的

参考例句：

• Ignore her,she's just acting.别理她，她只是假装的。
• During the seventies,her acting career was in eclipse.在七十年代，她的表演生涯黯然失色。

2 bailed   

保释，帮助脱离困境( bail的过去式和过去分词 )

参考例句：

• Fortunately the pilot bailed out before the plane crashed. 飞机坠毁之前，驾驶员幸运地跳伞了。
• Some water had been shipped and the cook bailed it out. 船里进了些水，厨师把水舀了出去。

3 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

4 underlying   

adj.在下面的，含蓄的，潜在的

参考例句：

• The underlying theme of the novel is very serious.小说隐含的主题是十分严肃的。
• This word has its underlying meaning.这个单词有它潜在的含义。

5 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

6 periphery   

n.(圆体的)外面；周围

参考例句：

• Geographically, the UK is on the periphery of Europe.从地理位置上讲，英国处于欧洲边缘。
• The periphery of the retina is very sensitive to motion.视网膜的外围对运动非常敏感。

7 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

8 collateral   

adj.平行的；旁系的；n.担保品

参考例句：

• Many people use personal assets as collateral for small business loans.很多人把个人财产用作小额商业贷款的抵押品。
• Most people here cannot borrow from banks because they lack collateral.由于拿不出东西作为抵押，这里大部分人无法从银行贷款。

9 speculation   

n.思索，沉思；猜测；投机

参考例句：

• Her mind is occupied with speculation.她的头脑忙于思考。
• There is widespread speculation that he is going to resign.人们普遍推测他要辞职。