–Adds Comment On Likely Size of 25 Bps
LONDON (MNI) – The European Central Bank could hike interest rates
at its next policy meeting in April, but is not poised to embark on a
series of increases, President Jean-Claude Trichet said Thursday.
Speaking at a press conference following the meeting of the
Governing Council, Trichet said that the choice of the phrase ‘strong
vigilance’ to describe the ECB’s policy posture was in line with the
past communications practice of the central bank.
“An increase of interest rates at the next meeting is possible,” he
said, reminding that the Council is never “pre-committed”. So it is not
a certain but a possible decision.
“This is standard doctrine,” he said.
Trichet ruled out the idea that a hike next month would be the
start of a series: “Certainly not the sense of a start of a series of
interest rate increases.”
In answer to a question as to whether the Council could be tempted
to hike rates by more than its customary 25 basis points, since the move
would not be the start of a sequence of hikes, Trichet clearly signalled
that this was unlikely: “That is not the appropriate interpretation in
my opinion.”
–London newsroom: 0044-207-634-1624: email: ukeditorial@marketnews.com
[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]
