ECB's Trichet Notes Downside Risks to Growth

European Economy | Written by CEP News | Jul 03 08 13:51 GMT |
(CEP News) Frankfurt - During the question and answer period following European Central Bank President Jean-Claude Trichet's monthly press conference, he acknowledged that economic growth in the second quarter of 2008 will likely not be as strong as the previous quarter. He also suggested that Q3 would not be very flattering as well.

Growth risks are on the downside, Trichet said.

However, Trichet also emphasized that the central bank's assessment of GDP growth is appropriate and that GDP growth remains dynamic over the medium term.

He also said the ECB has only one needle in its compass and that higher inflation expectations translate into higher interest rates.


Nevertheless, Trichet said there is no contradiction between the goals of price stability and economic growth.

By Todd Wailoo, twailoo@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, shuebl@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it

CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca

The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News.

A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.