Bloomberg.com: EU Economy - Trichet Says Shocks Aren't Over for Europe's Economy - by Allan Katz
Trichet Says Shocks Aren't Over for Europe's Economy EU Economy - Trichet Says Shocks Aren't Over for Europe's Economy - by Allan Katz
European Central Bank President Jean- Claude Trichet said the shocks to Europe's economy from financial market turmoil and rising food and commodity prices aren't over, the Wall Street Journal reported, citing an interview. Europe is facing a protracted period of high inflation rates, the newspaper quoted Trichet as saying. Trichet also said the ECB would deliver price stability in the medium term, the newspaper said. The ECB has refrained from following the U.S. Federal Reserve and Bank of England in lowering interest rates to shore up growth after an increase in borrowing costs. While euro-region inflation slowed to 3.3 percent in April from a 16-year high of 3.6 percent in March, it's still above the ECB's 2 percent limit. Trichet also called for a single European market for financial services in order to optimize the central bank's policy instruments and to improve the cohesion of European monetary union, the newspaper reported.
