European Central Bank president Jean-Claude Trichet has hinted the ECB may be forced to raise interest rates as early as next month to curb significant recent inflation increases.
While the ECB kept rates at 4% yesterday, Trichet warned a rate rise next month at he July meeting was “possible”. The aggressive talk from the ECB chief would have been noted by the Bank of England, which also decided to hold rates at the current 5% level. Year-on-year inflation has jumped 3.6% in the eurozone last month, ahead of the 3% official figure for the UK. “HICP inflation is now expected to remain high for a more protracted period than previously thought,” Trichet says. “We emphasise that maintaining price stability in the medium term is our primary objective in accordance wit...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes