"European Central Bank Improves Percent Rate" - Jean-Claude Trichet
Azerbaijan, Baku, 3 July / Trend corr A.Badalova/ On 3 July, European Central Bank (ECB) decided to irmpove its pecent rate by 0.25 percent point to 4.25%.
"The decision is intended to prevent violation of stability in the market in extended forecast," Head of ECB Jean-Claude Trichet said at a press conference broadcated on air of the Vesti channel.
According to outline reports of the european statistical agency Eurostat, index of consumer prices in Eurozone increased from 3.7% to 4% in a year, which is much more than ECB's target inflation (2%).
"Since autumn 2007, inflation rate in Europe has been growing and is expected to be far over the level required for stability," said Trichet.
Trichet said according to bank's estimates, stability will be maintained at the market. But currencies may weaken in 2008.
"Our key task is to maintain stability in price formation. Our intention is to maintain restrained medium-term and long-term inflation expectations, which will improve purchasing capacity and will maintain considerable stable economic growth and employment in Eurozone," Trichet said.
USD has achieved a new level of two months' minimum. Euro slightly grew to $1.5857.
According to Trichet, fiscal policy based on today's decision will help to achieve tasks.