Headquarters of the European Central Bank in Frankfurt
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European Central Bank set to raise eurozone base rate

For the first time in almost three years the European Central Bank is expected to approve an increase in the eurozone base rate from its current low of 1%.

Low rates were introduced in the UK, Europe and the US to try and stimulate growth when the global economy fell into recession, but the ECB has signalled it is time for that policy to end.

For some European countries it's good news but for others, like Portugal which is struggling with massive debts, the timing could not be worse.

Matthew Price reports.