The European Central Bank (ECB) is expected to lift the refinancing rate to 2.5 percent on Thursday to curb inflation, reports from Frankfurt said.

The bank, headquartered in Frankfurt, is also expected to release new economic projections, forecasting a further rise in inflation in the euro zone this year.

At the end of last year, the bank said inflation was expected to exceed the two percent ceiling for a seventh time this year. Last month, ECB President Jean-Claude Trichet indicated that monetary policy would be tightened.

The ECB's governing council is likely to announce the decision later in the day after a council meeting.

Source: Xinhua