FRANKFURT (Thomson Financial) - The European Central Bank reiterated that it is ready to raise interest rates if necessary to prevent a build-up of inflationary pressures in the euro zone. The ECB is concerned that companies and wage negotiators might increase wages and prices to compensate for recent rises in food and energy prices, which pushed headline inflation up to 3.1 pct in November and December. Such 'second round' effects would lead to a more lasting rise in headline inflation, it fears. 'The governing council remains prepared to act pre-emptively so that second round effects and upside risks to price ... (full story)