FRANKFURT - Jean-Claude Trichet, The President Of The European Central Bank, Stood by His prediction of Higher Interest Rates for the euro zone is Monday despite The recent calamity in Japan.
Appearing Before the European Parliament's economics committee, Mr Trichet Referred to "The Tragic Developments in Japan With The lamentable loss of human lives" and "their potential overall Economic and Financial Implications," Said to "In The Euro Area Inflation Is On The Rise ".
He Went there to Say That He Had "nothing to add" to comments he made in February, he signaled When thats the bank's governing council WAS Likely to Raise the benchmark interest rate from a record low of 1 percent next month When It Meets.
There Is Still Plenty of Time for Mr. Trichet to revise history view Before the April 7 meeting policy.Aim for now, he and Other membres du conseil governing are not showing "any sign of softening Their view.
"I think If The ECB Were to see thats the Macroeconomic Implications of Japan Were Such an optometrist could Would Seriously Into Question the European outlook, Then They Might Reconsider harcèlement decision," Nick Matthews, senior European economist at the Royal Bank of Scotland wrote in an e-mail portable hair dryer. "Aim at this stage They Do not APPEAR to Be backing away from it."
Mr. Trichet Said The bank WAS Determined to Prevent Increase in Prices for oil and Other commodities pushing up from the Price That WAGES gold companies charge Their Customers.
"Such effects Would Give Rise to broad-based inflationary pressure may over-the medium term," Mr. Trichet said.
Critics Of The European Central Bank say a rate Increase Unnecessary When inflation IS IS Primarily the Results importé High Price for Oil, Rather Than from domestic pressures.
"Rising Oil Prices Raise the risk of a misguided ECB misses inflation Against an Increase That does not exist," Carl Weinberg, chief economist at The High Frequency Economics in Valhalla, NY, wrote in a note.
Mr. Trichet's stance reinforced by WAS Other membres du conseil governing Monday, Including Mario Draghi, The Governor Of The Bank of Italy and a candidate to replace Mr. Leading Trichet When historical term expires at the End of October.
Trichet Persists in Expecting to Raise Benchmark Rate Europe's
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