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Trichet Of E C B Says I R Are Still Accommodative

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Trichet says ECB hiked rates due to recent increase in inflation risks UPDATE
(updating with comments on current interest rate level, housing markets)
PARIS (AFX) - European Central Bank president Jean-Claude Trichet said the ECB raised rates last week due to an increase in inflation risks in recent months.
'We considered that there was an increase in medium term inflation risks,' he told journalists.
He said an increase in the ECB's projections for growth and inflation was 'one element' in the rate hike decision.
He said the ECB was also concerned that its survey of professional forecasters showed a rise in inflation expectations, which pointed to an increasing risk that inflation would be above 2 pct in the medium term.
Trichet said the ECB's monetary policy remains 'accommodative' after last week's hike, which took its main rate to 2.50 pct from 2.25.
'We are in an environment which remains accommodative
,' he said.
But he declined to say what a neutral ECB interest rate would be,

More IR pain to come but at least we can enjoy the repercussions on over-extended borrowers!


"We are in an environment which remains accommodative," he told reporters here, meaning the ECB considers that monetary policy is providing a stimulus to economic activity.

In other words, rates are in upward mode.

Edited by Realistbear

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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