Portugal may need to borrow 'up to £70bn'

Portugal's bail-out request is expected to be discussed when EU finance ministers meet later in Budapest.

The European Central Bank has raised its key interest rate by a quarter point to 1.25%.

The increase is the first since July 2008 and it will add to the pressure on eurozone countries with big debts, like Portugal.

The Bank of England said it was keeping interest rates at 0.5% - a historic low.

The BBC's chief economics correspondent Hugh Pym reports.