DEBORAH MARCHINI, CNN ANCHOR: The euro is up about three- quarters of a cent today. The European Central Bank meets tomorrow, and at least some traders are predicting another interest rate hike.</s>DAVID HAFFENREFFER, CNN ANCHOR: Some recent economic reports have suggested that growth in Europe comes at a price: inflation. Janet Guyon has more now for us from London. And Janet, what is the latest on this front?</s>JANET GUYON, LONDON BUREAU CHIEF, "FORTUNE": Well we -- I did talk to some analysts this morning and there is an expectation that the ECB will raise rates another quarter of a percentage point. Now they just raised rates about a month ago to 4.75 percent, that is the bank repo rate. So we are expecting rates to go to perhaps five percent. That is, in part, because inflation has stepped up here in Europe. It is above the ECB's target of two percent. Recent figures are that inflation in Euroland, that 11-country area where the euro is in force, is at about 2.6 percent. That's because of an increase in producer prices and in oil prices.</s>MARCHINI: ... interest rates of the prospect thereof be what's responsible for bringing money back into the euro today?</s>GUYON: I think there is some talk of intervention in the market. So, yes, the euro has firmed. Also this interest rate increase, or this anticipated interest rate increase, could help firm the euro. On the other hand, people are saying it could hurt growth in Euroland next year. Some of the analysts are reducing their expectations for GDP growth in the 11-country area to about 1.9 percent next year from over two percent. So, you know, when we get -- if we get this interest rate hike, which we are expecting, it will be interesting to see whether the euro rallies, or whether it falls back on the fears that it will hurt growth next year.</s>MARCHINI: It can't get out of the spot it's in. All right, thank you so much, Janet Guyon, "Fortune" magazine.
'Fortune': ECB Interest Rate Hike Expected