In the monthly ECB bulletin the European Central Bank reiterated the comment in the press conference following the rate decision, and inline with Trichet, the ECB said it will continue to monitor very closely the developments and the upside risks to inflation.

The ECB said that they are monitoring the upside risks on inflation that are mainly due to the rise in energy and commodity prices. The policy stance remains accommodative and the will continue to monitor very closely all developments with respect to upside risks to price stability.

The ECB said forecasters surveyed by the ECB raised their inflation expectations for 2011 to 2.5% from 1.9% and to 1.9% next year from 1.8% while kept their long-term inflation expectations at 2%.