Times have suddenly become much choppier at the European Central Bank.

In recent months, its distaste for drama has contrasted with that of the US Federal Reserve, which slashed US borrowing costs in response to the unfolding financial market crisis. But the surprise comments on Thursday by Jean-Claude Trichet, ECB president – hinting on Thursday night ripping up forecasts showing ECB interest rates on hold at the current rate of 4 per cent for many months to come. “It shows in a vivid way how the agenda of central banks has shifted,” said Ken Wattret at BNP Paribas. “Rates are going up even if the economy is suffering.”