• • Trichet’s comments broadly similar to those of early March

  • • ECB says inflation still ‘temporary high’…

  • • … and ‘economic fundamentals solid’

  • • So, ECB sees no need to follow rate cuts of other Central Banks

  • • Trichet does acknowledge greater threat from financial market turbulence

  • • So, policy on hold for next few months, but …

  • • We think ECB will be forced into a summer cut and expect interest rates will be 75 basis points lower by year end