LONDON (MNI) – European Central Bank President Jean-Claude Trichet
signaled further monetary tightening in the months ahead at the ECB’s
regular monthly press conference Thursday.
“We will continue to monitor very closely all developments,” the
ECB chief said.
The comment is normally a signal that rates will be hiked in two
months’ time.
By failing to deploy the “strong vigilance” phrase, Trichet
apparently aimed to signal that the next rate hike would not come in
June, as a growing number of observers had expected.
June Bunds rallied on Trichet’s comments.
Trichet noted that today’s policy decision was taken unanimously by
the Governing Council. He reminded that the Council never pre-commits
itself on policy moves and can raise rates whenever it deems necessary.
–London newsroom: 0044-207-8627492: email: ukeditorial@marketnews.com
[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$]
