www.reuters.com/article/marketsNews/idUSL2634038120080327Trichet reaffirms ECB inflation line in German TV
Wed Mar 26, 2008 8:11pm EDT
BERLIN, March 26 (Reuters) - European Central Bank President Jean-Claude Trichet reaffirmed the bank's commitment to price stability and fighting inflation in an interview with a German television network released on Wednesday.
"In this phase the European Central Bank is trying, more than anything else, to prevent the inflationary expectations," Trichet was quoted saying in an interview with WDR television in Brussels that was released on the ARD TV Web site (
www.ard.de).
Trichet had earlier stuck to his firm stance against inflation on Wednesday in testimony to the European Parliament's Economics and Monetary Affairs Committee. He reaffirmed those views in the German interview published on the Web site.
"We are there to guarantee medium-term price stability," Trichet was quoted saying.
"That is exactly what the Germans and all the other citizens demand from us. And on the other hand we look at the interest rates that are set to guarantee medium-term price stability," he said in comments that only appeared on ARD's Web site.
The ECB has held interest rates at 4.0 percent throughout the last nine months of turmoil on financial markets, in contrast to some other major central banks which have cut them.
Euro zone inflation is at a record 3.3 percent. Inflation was expected to remain significantly above the ECB's 2 percent ceiling for most of 2008.
"We're obviously doing everything that is necessary to keep the prices stable for the medium term and to stay near the 2-percent target," Trichet said.
"As far as the economy goes, we are closely watching the economy and watching especially that it continues growing. To summarise what we have to do, I'd say: remain self-confident ...and raise the self-confidence where it's necessary." (Writing by Erik Kirschbaum; editing by Carol Bishopric)
Fortunately we have a sane man in the ECB, unlike Bernake.
