As predicted, the European Central Bank has left its benchmark interest rate unchanged at 4%. ECB President Jean-Claude Trichet and his policy makers took into account the conflicting demands of higher inflation and the impacts of the euro’s record strength on the region’s economic growth.
But as ever, Trichet was giving nothing away when he spoke to reporters. He said: “We will do what is necessary to continue to solidly anchor inflation expectations. We are looking very, very carefully at all the surveys, and all the information that we extract from the financial markets… and disorderly movements of exchange rates were never welcome.”