Thursday, March 3, 2011

Euro rates ‘could rise’ in April


The European Central Bank has kept interest rates in the eurozone unchanged at a record low 1%
The president of the European Central Bank has said that a rise in eurozone interest rates was “possible” at its next policy meeting in April. 

Jean-Claude Trichet said the ECB was “in a posture of strong vigilance” against rising inflation.
He said the rate-setting committee may have to act in the light of recent “price shocks” due to the sharp rises in commodity prices.

On Thursday the ECB decided to keep rates at 1% at this month’s meeting.
Speaking at a press conference, Mr Trichet stressed that no decisions had yet been made.
“We are never precommitted. The decision will be taken at the next meeting by the governing council,” he said.

But analysts said it was a clear signal that a rate rise next month was likely.
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