ECB ups interest rates to 5%

The European Central Bank has voted to up the interest rates by 25 basis points to 5% with effect from June 13 2007.

The interest rate on the deposit facility will also be increased by 25 basis points to 3%, with effect from June 13 2007.

The governing body of the Central Bank also decided that the minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 4%.

This comes a day ahead of the Bank of England’s vote on interest rates.

It is anticipated that following the 25 basis rise in May, the Monetary Policy Committee will hold rates.