The European Central Bank (ECB) will today warn governments not to curb the role of central banks in banking supervision, according to a German newspaper report. The Borsen Zeitung says the ECB is concerned about the plans of some EU member-states, including Ireland, to reduce the role of central banks in regulating financial services.

The ECB's governing council was due to meet in Dublin today but, because of the foot-and-mouth crisis, the central bankers will meet by tele-conference.

The Borsen Zeitung says the governing council will discuss a statement on banking supervision during the meeting.

The ECB president, Mr Wim Duisenberg, last month expressed "the greatest possible concern" over German plans to merge banking, insurance and securities market supervision into a new institution. But yesterday's report quotes senior ECB sources as saying that Mr Duisenberg's criticism was also directed at Ireland, Austria and Finland.

Few analysts expect the ECB to cut interest rates today, not least because new data from France and Germany suggests that euro-zone inflation has started to rise again.

The EU is expected to report tomorrow that euro-zone inflation rose to an annual rate of 2.6 per cent in February, compared to 2.4 per cent the previous month.

The ECB believes that inflation will fall below 2 per cent this year and Mr Duisenberg has expressed confidence that economic growth will remain robust. The ECB is the only major central bank in the world that has not cut interest rates this year.