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(CEP News) - Speaking in an interview with ARD television in Germany, Bundesbank President Axel Weber said that the European Central Bank had signalled its intentions to guard the purchasing power of European consumers by hiking rates 25 bps to 4.25% on Thursday morning.
Repeating much of what was said by ECB President Jean-Claude Trichet on Thursday morning, Weber said that today's increase should help the bank reach its 2.0% inflation target, although price growth could remain above 4.0% throughout the summer and above forecasts for some time. Wages and prices have risen strongly, said Weber. Weber said that economic growth would remain robust in the long term and that the higher rates should help bolster consumption. He also said that higher oil prices would make bringing inflation down more difficult, although growth would not be choked by higher energy costs. By Erik Kevin Franco,
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