The Federal Reserve and the European Central Bank painted contrasting pictures of the US and European economies on Thursday, with Ben Bernanke, Fed chairman, depicting a US economy that could continue to grow rapidly without generating inflation, while the ECB hinted that further interest rate rises were needed to stem inflationary pressure in the eurozone.

Together, the statement by Jean-Claude Trichet, ECB president, and the speech by Mr Bernanke indicated that European interest rates were likely to rise while there was no urgency for further US rate rises.