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Current ECB Monetary Policy Will Deliver Price Stability, Says Trichet |
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European Economy |
Written by CEP News |
May 08 08 13:04 GMT |
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(CEP News) Frankfurt - Following the European Central Bank's decision to leave its main refinancing rate at 4.00% in May, ECB President Jean-Claude Trichet held a press conference and noted that inflation rates have risen significantly since the fall and are expected to remain at high levels for a protracted period of time, but that the current monetary policy would deliver price stability.
The ECB president emphasized that price stability was the central bank's primary mandate, and that the anchoring of medium-term inflation expectations was a main priority. Trichet also said that assessments of upside risks to price stability have been confirmed, that the HICP would remain significantly above the ECB's target of 2% in the coming months and that rising food and energy prices were contributing to the upside risks. However, the ECB president did suggest that inflation will moderate in the latter part of this year. By Todd Wailoo,
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, edited by Nancy Girgis,
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