ECB staff lowers growth outlook, raises inflation view

Since the ECB has only one needle in its compass, we probably should not care that the staff has lower their growth forecast but should instead focus on the fact that they hiked their inflation outlook. The staff sees 3.4-3.6% up from 3.2-3.6% in June. growth is seen between 1.1 and 1.7% this year, down from the June forecast for 1.5-2-1%. EUR/USD trades at 1.4452.

Update: The ECB has no bias for future rate moves, Trichet says.