|
(CEP News) Frankfurt - At a press conference explaining the reason behind the European Central Bank's decision to raise its main refinancing rate 25 basis points to 4.25%, ECB President Jean-Claude Trichet said that the decision was made to counter the medium term risks to price stability.
Trichet also stressed that the current inflation level was "worrying" and were "well above" levels consistent with price stability. Noting that the main driver of rising inflation was commodity prices, Trichet suggested that the strong HICP growth would remain "well above" 2% for some time. Risks to price stability "clearly on the upside", Trichet said. The ECB President also expressed concern that price and wage setting could add to upside inflation pressures and emphasized that the governing council was monitoring price and wage setting behaviour with particular attention. 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. |
