By Marcus Leach

It is expected that the European Central Bank (ECB) will, later today, raise interest rates in an attempt to cool inflation.

While several smaller European countries facing major debt problems the ECB is more concerned about overheating in economies such as Germany.

At present the Eurozone inflation level is at 2.7%, with the ECB's target being a shade below 2%.

The main role of the ECB is to ensure inflation remains low by setting low interest rates. The current rate is 1.25%, but last month the ECB said it would keep a strong vigilance on inflation, which was seen as a signal the interest rate would rise to 1.5%.

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