Following are comments by European Central Bank President Jean-Claude Trichet at a news conference held after the bank's Governing Council kept interest rates at 1.25 percent on Thursday.
STRONG VIGILANCE ON PRICE RISKS
On balance, risks to price stability are on the upside, accordingly strong vigilance is warranted. On the basis of our assessment we will act in a firm and timely manner.
THURSDAY'S RATE DECISION UNANIMOUS
Today's decision as regards interest rates was unanimous.
The most recent data confirm the positive underlying momentum of economic activity in the euro area, while uncertainty remains elevated.
PRICE RISKS TO UPSIDE
Overall, our monetary policy stance remains accommodative, lending support to economic activity. On balance, risks to the outlook for price stability are on the upside.
LIQUIDITY REMAINS AMPLE
(There is) continued upward pressure on overall inflation, mainly owing to energy and commodity prices. The underlying pace of monetary expansion is gradually recovering. Monetary liquidity remains ample, with the potential to accommodate price pressures in the euro area.
ON LIQUIDITY OPERATIONS
The ECB has decided to continue to conduct its main refinancing operations (MROs) as fixed-rate tender procedures with full allotment for as long as necessary, and at least until the end of the ninth maintenance period (of 2011) on October 11, 2011.
This procedure will also remain in use for the Eurosystem's special-term refinancing operations with a maturity of one maintenance period, which will continue to be conducted for as long as needed, and at least until the end of the third quarter of 2011.
The fixed rate in the special-term refinancing operations will be the same as the MRO rate prevailing at the time.
Furthermore, the Governing Council has decided to conduct the three-month longer-term refinancing operations (LTROs) to be allotted on 27 July, 31 August and 28 September, 2011 as fixed rate tender procedures with full allotment.
The rates in these three-month operations will be fixed at the average rate of the MROs over the life of the respective LTRO.