Janet Yellen says interest rate hike ‘will be appropriate’ later this year

Federal Reserve chair issues caution to US markets that the increase is ‘likely to be gradual’ over lingering concerns about ‘slack’ in the jobs market

Federal Reserve chairwoman Janet Yellen has said she expects interest rates to rise this year, in what would be the first rate hike from near zero since the 2008 economic crisis.

Yellen said that if the US economy continues to strengthen, “it will be appropriate at some point this year to take the initial step to raise the federal funds rate”.

Related: Federal Reserve says June too early to begin raising interest rates

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Germany and IMF oppose quick Greek deal, but Athens still hopeful – live updates

All the latest economic and financial news, as EU leaders hold a summit in Riga overshadowed by the Greek debt crisis

IMF: No quick and dirty dealGreek spokesman: Deal can be sealed in 10 days
Angela Merkel: There’s still a lot to doMarkets ‘losing patience’ at slow progressEU leaders pledge commitment to Eastern Partnership

7.05pm BST

And finally, I think, here’s our account of the rather chilly reception dished out to Hungary’s leader in Riga today.

‘Hello, dictator’: Hungarian prime minister faces barbs at EU summit http://t.co/c0JF7X4qB2

6.03pm BST

France’s finance minister, Michael Sapin, also rules out a parallel currency for Greece.

france’s sapin says there is no plan b for greece, no parallel currency planned…only currency for ez is the € and it’s shared by friends

5.57pm BST

Europe’s stock markets didn’t like the news that German finance minister Wolfgang Schaeuble had apparently mentioned the option of a Greek parallel currency such as IOUs.

It caused jitters, even though it was denied quite swiftly, says Jasper Lawler of CMC Markets:

The idea of a parallel currency is not without precedent but the news really just reflects Germany’s willingness to take the game of chicken to the very edge, taking any opportunity to show its not worried about a Grexit. Earlier in the month, Greece officials said Athens is not considering a parallel currency.

4.43pm BST

Tsipras may have been all smiles at the EU summit in Riga.

But the tough work begins this weekend when he is likely to face a groundswell of opposition at a two-day meeting of Syriza’s central committee.

“Any going back on the above will be a distortion of the party’s physiognomy.”

4.36pm BST

The Greek government has released a statement following prime minister Alexis Tsipras’ meeting with European Commission chief Jean-Claude Juncker.

“Prime minister Alexis Tsipras held a meeting with the president of the EC, Jean Claude Juncker, in a very good climate in which they had a very constructive discussion.

The Greek prime minister informed Mr Juncker of the progress in negotiations and expressed the need for a mutual effort by both the Greek government and the institutions so that a mutually beneficial agreement can be found soon within the framework of realism and shared responsibility.”

3.24pm BST

The head of the International Monetary Fund has also warned against a “quick and dirty” deal for Greece.

“I know there is a lot of work to be done. Parties are now working, receiving proposals, working in cooperation and we will continue to do so as fast as we can.”

“It has to be a comprehensive approach, not a quick and dirty job.”

IMF head Christine Lagarde states that Greek review cannot be a quick and dirty job, more work needs to be done.

3.17pm BST

The Financial Times has the inside line on last night’s three-way meeting between the leaders of Germany, France and Greece.

Angela Merkel and Francois Hollande told Alexis Tsipras that there’s no way that Greece will get any funds without the agreement of the International Monetary Fund.

The message, delivered by Angela Merkel, the German chancellor, to Alexis Tsipras, her Greek counterpart, at a private meeting in Riga, Latvia’s capital, as well as by lower-level European officials to their Greek interlocutors, comes as the IMF has been weighing whether to withhold its €3.6bn portion of the €7.2bn bailout tranche Athens needs to avoid default.

Eurozone and Greek negotiators have been pushing to complete a deal by the end of the month to free up bailout funds before the first in a series of loan repayments owed the IMF totalling €1.5bn falls due June 5. But securing IMF approval for a bailout deal significantly complicates that timeline.

Eurozone tells Greece no deal without IMF http://t.co/x55iExxpMQ

2.53pm BST

Just in: Germany has officially denied that Wolfgang Sch