http://www.reuters.com/article/2011/05/03/us-ecb-rates-idUSTRE74233720110503(Reuters) - The European Central Bank will signal its readiness to raise interest rates when it meets on Thursday and may use its 'strong vigilance' code words to signal a rise as soon as June.
The Frankfurt-based bank raised euro zone rates by a quarter of a percentage point to 1.25 percent last month, ending almost two years of record-low interest rates and beginning what economists expect to be a run of increases.
Just when the next rise comes will be the key issue on Thursday, with attention focused on the wording ECB President Jean-Claude Trichet uses in the opening paragraph of his post-meeting statement.
"We think it's June," said RBS economist Nick Matthews. "If we're correct in that, we would expect President Trichet to use the wording 'strong vigilance' on Thursday to signal that."
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