Jean-Claude Trichet was speaking to reporters after the bank decided to raise interest rates by a quarter-point to 1.5%, in an effort to curb inflationary pressures in the euro zone. Economists had said the use of the phrase 'monitor very closely' would signal that another interest rate increase was likely this year. But Mr Trichet repeated that the ECB never pre-committed to interest rate movements. Asked about the effect of an interest rate increase on Ireland and other struggling euro zone countries, Mr Trichet said the ECB had a responsibility to deliver price stability to 331 million people in the euro zone, and Ireland benefited as much as any other country from low inflation. Also on Ireland, he said the latest figures showed that its 'results are going in the right direction'. Euro zone inflation remained at 2.7% in June, softer than expected but well above the ECB's target of just under 2%. The ECB had also increased its rates in April, becoming the first major central bank to lift interest rates after the intensification of the financial crisis. The downgrading of Portugal's credit rating to junk earlier this week rattled financial markets. The ECB has pledged to keep liquidity flowing to euro zone banks that need it, and Trichet today said Portuguese debt would be accepted by the ECB as collateral for now, come what may. 'We have decided to suspend the application of the minimum credit rating threshold ... for the purpose of Eurosystem credit operations in the case of marketable debt instruments issued or guaranteed by the Portuguese government,' he said, adding that this suspension would be maintained until further notice.