European Central Bank President Jean- Claude Trichet said his economy faced a "more protracted'' period of elevated inflation than previously expected, signaling no imminent plan to cut interest rates to ease a credit squeeze in financial markets.
"The risks to price stability over the medium term are clearly on the upside,'' Trichet told the European Parliament's economic and monetary affairs committee in Brussels today. "The ECB's governing council stands ready to counter upside risks to price stability.''
Risk of price stability? I think only the ECB and the statisticians believe that prices have been stable in the past... I think The ECB team should drink some strong coffee to wake up to the reality.
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