ECB hikes rates

The increase - the first for 13 months - had been widely expected, given Eurozone inflation of 4pc, or twice the ECB's target. The pound is expected to weaken further against the euro, as a result of the move. Opinion is divided as to whether the rate hike will be a one-off, or the first in a series. Ben Read, senior economist at the cebr, said: "What is clear is that inflation will continue to rise over the coming months as increased commodity prices continue to push through the system. "ECB hawks will see this as a sign for further increases, but they may also have one eye on sign...