Thursday, June 16, 2011
European Central Bank Called for “strong vigilance”. That’s code for a rate rise next month
The European Central Bank reaffirmed its call for "strong vigilance" in the fight against inflation risks, leading many to believe that a rate rise is in the offing at the bank's next meeting. The language, as is often the case, matched ECB President Jean-Claude Trichet's opening statement at the bank's last press conference. The phrase "strong vigilance" is generally understood to be a cue that the bank will raise rates at its next policy-setting meeting July 7.