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FRANKFURT, Germany (AP) - The European Central Bank held its key interest rate steady at 3.25 percent as expected on Thursday but set the stage for an increase — likely a quarter of a percentage point — next month.
With business and consumer confidence in Germany and France soaring and investment booming worldwide, the ECB is concerned that inflation must be contained to keep markets running smoothly.
ECB President Jean-Claude Trichet said that "strong vigilance remains of the essence," a signal that the bank is set for an increase when it meets Dec. 7. He has previously used the phrase at meetings before a rate increase was announced the next month.
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