The European Central Bank raised its core interest rate to 4% from 3.75% Wednesday, as widely expected, but ECB President Jean-Claude Trichet refrained from using the now-familiar phrase "extreme vigilance" to signal further rate hikes.
Trichet continued to describe rates as "accommodative," however, when speaking at a news conference following the decision, suggesting the central bank considers them low enough to stimulate growth in the region and another rise is possible.
All 83 analysts polled by Reuters last week forecast the ECB would lift rates by 25 basis points at its June policy meeting. The hike marks a doubling in the borrowing rate for the 13 countries in the euro zone in 18 months.