FXstreet.com (Barcelona)- Jean Claude Trichet, the European Central Bank's president has shown his commitment to use monetary policy in order to maintain inflation at low levels during times of uncertainty, at his press release after the latest monetary policy decision.
The ECB's president has warned about upward risks to price stability over the medium term in a context of a favourable economic growth, Trichet assured that he will monitor very closely all developments very closely, and that the Bank will act in a firm and timely manner to keep price stability.
No clear sign of the Bank's monetary policy over the next months has been given, as Trichet pointed out to the need to await new data before drawing monetary policy conclusions, but he affirmed that Euro ZoneÃ‚Â´s economic fundaments are strong, thus if something changes the actual interest rates will be a hike, rather than a cut.
Inflation at consumer level, according to Trichet, will be significantly above 2% in the coming months, to moderate later in 2008.
About the finantial markets crisis, Trichet affirmed that such a turmoil has affected confidence levels and that uncertainty remains still at high levels, but GDP growth has been sustained during the third quarter and he advanced that it will grow around potential in 2008.