ECB ups growth forecast to 1.6% and holds rates

The ECB expects growth this year to be about 1.6%, up from its June forecast of 1%. Next year it forecasts growth of 1.4%, compared to its previous estimate of 1.2%. ECB president Jean-Claude Trichet, who also dismissed fears of a double-dip recession, said the optimistic forecast resulted from a recent growth spurt and expects further "positive underlying momentum" going forward. However, he also warned the figures could be overly-upbeat and sounded a cautionary note over slower growth in other advanced economies - widely interpreted as a reference to the US. The ECB left eurozone...