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THE EUROPEAN Central Bank yesterday said euro zone growth this year would be much stronger than expected, but betrayed worries about the outlook by warning that its forecasts could prove over-optimistic and extending into 2011 the supply of emergency liquidity to the region’s banks.

Jean-Claude Trichet, ECB president, said the “very substantial” upward forecast revision followed an exceptional recent growth spurt. Although growth would cool in the second half of the year, he expected a continuing “positive underlying momentum” in the euro zone, and again ruled out a “double dip” back into recession.