After ECB raised the interest rates Trichet signaled that the bank will hold rates in August by avoiding strong vigilance, Trichet also said the rate increase this month was warranted on upside price risks, adding that the ECB will monitor very closely all developments.

The important news in Trichet's conference is that the governing council decided to suspend the minimum required collateral rules for Portugal in the refinancing operations, which he commented as the direct response which comes in light of Moody's decision to cut the rating to junk.

Trichet also said the ECB monetary policy stance remains accommodative and that countries must stick to fiscal plans.

About growth Trichet said that euro region growth may slow in the second quarter but positive underlying momentum is seen, while growth risks are broadly balanced. Downside risks to growth are seen from Financial market tension and further increase in commodity prices. Inflation risks remain to the upside and is important to ensure price stability and contain second-round effects.