|
(CEP News) Frankfurt - Following the European Central Bank's decision to raise its main refinancing rate to 4.25% on Thursday, ECB President Jean-Claude Trichet held a press conference and said that the decision to raise was taken to prevent second round inflation effects.
Trichet conceded that EU harmonized CPI was expected to remain above the ECB's target level for a protracted period and emphasized that there were upside stability risks in the medium term. Medium term price stability was the primary objective, Trichet stressed. The ECB President also acknowledged that data pointed to economic growth slowing in the euro zone but that economic fundamentals remained sound. The ECB will monitor "very closely all developments", Trichet said. By Todd Wailoo,
This email address is being protected from spam bots, you need Javascript enabled to view it
, edited by Cristina Markham,
This email address is being protected from spam bots, you need Javascript enabled to view it
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer. |
