European Central Bank President Jean-Claude Trichet comments on monetary policy, the economic outlook, inflation and risks.
He spoke during a press conference in Frankfurt today after the ECB lowered its key rate by 50 basis points to 1.5 per cent.
“Overall, inflation rates have decreased significantly and are expected to remain well below 2 percent in 2009 and 2010.
That’s due to the fall in commodity prices and diminishing cost pressures reflecting the severe downturn in economic activity.
“Both global and euro-area demand are likely to be weak in 2009. Over the course of 2010, the economy is expected to gradually recover,” he said.
Mr Trichet said inflationary pressures have been diminishing. “After today’s decision we expect price stability to be maintained over the medium term.
"The governing council will continue to ensure a firm anchoring of medium-term inflation expectations. We’ll monitor very closely all developments in the period ahead.”
Bloomberg
