Politicians, ECB chief square off as rate hike looms

FRANKFURT (AFP) — Stiff inflation and stagnating growth put European Central Bank independence in the spotlight Wednesday as politicians and ECB president Jean-Claude Trichet crossed swords ahead of an expected interest rate hike.

The bank will almost certainly raise its benchmark rate to 4.25 percent on Thursday to signal it is determined to counter eurozone inflation that hit a record 4.0 percent in June, economists said.

Political leaders worry that will put the screws to economies that at best are weakening as in Germany and at worst are close to recession, as in Ireland and Portugal.

In the past week, French President Nicolas Sarkozy, Spanish Prime Minister Jose Luis Rodriguez Zapatero and German Finance Minister Peer Steinbrueck have urged the ECB to mull the effects of a rate hike would have on growth.

Trichet responded indirectly by telling the German daily Die Welt in remarks to appear ...