Wednesday June 25, 10:15 AM
Trichet says inflation risks have intensified; ECB on alert
BRUSSELS (Thomson Financial) - European Central Bank President Jean-Claude Trichet said euro zone inflation risks have intensified.
Trichet told the European Parliament economic and monetary affairs committee the ECB is 'strongly
determined' to anchor inflation expectations solidly, reiterating the central bank is 'in a state of heightened alertness'.
He said inflation is expected to remain high for longer than previously thought and it is 'imperative' second-round inflation effects are avoided.
He said euro zone growth is expected to continue but at more moderate pace. He said the growth outlook is uncertain but downside risks prevail.
Trichet also said the ECB is ready to smooth money market liquidity conditions around the end of the first half if necessary.
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