Trichet Says Rate Increase Will Bring Down Inflation |
| Bloomberg - Jul 3, 2008 |
European Central Bank President Jean- Claude Trichet played down prospects of further interest-rate increases, saying the quarter-point move today will help the bank bring inflation back below 2 percent.
``The monetary policy stance following today's decision will contribute to achieving our objective,'' Trichet said at a press conference in Frankfurt after the ECB raised its benchmark lending rate to 4.25 percent. Trichet said he has ``no bias'' on further moves.
The euro slumped against the dollar and European government bonds recovered their losses after Trichet's remarks. The ECB is weighing the risk that higher rates will exacerbate an economic slowdown against the danger that the fastest inflation in 16 years will feed into wages and prices.
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- Posted: 2008-07-03 09:08:52
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