EU trade unions criticise ECB rate hike

BRUSSELS (Reuters) - Trade unions in the European Union harshly criticised the European Central Bank on Thursday for increasing interest rates, saying the hike would harm economic growth without curbing inflation.

"The ECB's decision is dangerous, counterproductive and not necessary. It's the European economy and European workers that risk paying the price for this," the European Trade Union Confederation said in a statement.

The ECB raised its key rate on Thursday to 4.25 percent from 4.0 percent to counter euro zone inflation, which hit a record 4.0 percent in June, more than double the bank's target.

ETUC said the hike would do nothing to reduce inflation as current price growth resulted from surging oil prices.

"Choking the euro area economy will do little to address the real causes of inflation since high headline inflation is essentially imported from the rest of the world through high oil prices," it said.

It reiterated its objection to ECB views that second-round inflationary effects could result from wage growth.

(Reporting by Marcin Grajewski; Editing by Dale Hudson)