Remember, the ECB’s mantdate is price stability. This applies to the downside, as well as the upside. Trichet says there is no elevated risk of deflation in the euro zone (uh huh..) but the ECB must remain alert to the possibility.
Trrichet also lays out the welcome mat for the UK, saying they are welcome to join the euro and that it is in the UK’s interest to join the euro. (That’s a hard sell amidst a major recession when the weka pound has help insulate the UK economy to the downside).
