FXstreet.com (Barcelona) - The ECB is expected to raise its main interest rate by 25 basis points for the first time since June 2007 in order to dampen inflation in the Euro Area., which is growing at levels well above the upper limit of the ECB's margin for price stability.

Jean Claude Trichet, president of the European Central bank has affirmed that the Bank would monitor carefully all developments and act in a firm and timely manner, with inflation in the Euro Area growing at a 4.0% year on year pace, and producer prices rising 7.1% in the last 12 months to May, the decision of the ECB seems very likely to be a 25 basis points rate hike.

On the other side, politicians have tried to put pressure on the Bank's Monetary Policy Committee, pointing out to the negative consequences this rate hike would bring on the already weakened household economies, and on business activity.

Some experts focus on Trichet's post meeting conference to look for hints about the outlook of the Banks monetary policy, as the Bank could leave the door open for a further rate hike in the last quarter of this year in case inflation remains at such high levels.