Euro-zone interest rates may rise

Jean Claude Trichet, the Governor of the European Central Bank (ECB), has dropped his biggest hint yet that Euro-zone interest rates may be set to rise, due to inflationary pressures related to increasing energy costs.

For the time being Euro-zone base rates remain at 2%, however the Euribor, which is the rate used to calculate mortgage repayments in the Euros-zone, rose to 2.223% in August.

Sharp rise in Dubai rents

Rental prices in Dubai increased by 40% during the first half of 2005, according to the National Bank of Dubai's latest report.

The bank is concerned that the sharp rise in rentals, which form the single largest constituent of the CPI at 36.1%, is responsible for soaring UAE consumer price inflation, estimated to reach 15-20%, which raises considerable fears over the exact market rate of inflation.