Momentum in the economy is gathering pace and the ECB are likely to give quite a hawkish outlook in the press conference, which could trigger further bond losses. Today's rate increase certainly won't be the last.

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Growth prospects have brightened ... Against this background and due to the excess liquidity in the euro zone, which is a threat for price stability, the ECB will hike interest rates in 2006 to 2.75 per cent.

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