Fri, Jul 4 2008, 06:58 GMT
by Marina Schiaffino
The European Central Bank Monetary Policy Committee, as widely expected, has decided to hike interest rates by 25 basis points to 4.25% after their monthly policy meeting.
In the speech made after the decision Trichet said that this movement has been taken in order to prevent second round effects to price stability over the medium term. He did not give any hint over next interest rate moves as he reaffirmed the Bank's commitment to anchor price stability over the medium term.
Trichet, also said that he did not want to precommit on any future rate moves, and affirmed that the Bank's primary objective is to maintain price stability over the medium term, and, therefore, the Bank will do whatever is needed to keep medium term inflation in line with price stability in order to "preserve purchasing power in the medium term and continue to support sustainable growth and employment in the euro area."
Check the effect that the meeting is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. Or check the transcript of the live coverage: "ECB and Non-Farm Payrolls Live Coverage with Sunil Mangwani and Valeria Bednarik".
Published on Fri, Jul 4 2008, 07:23 GMT
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