LJUBLJANA, Slovenia (MNI) – The European Central Bank has not yet
taken a decision on whether to raise interest rates in April, ECB
Governing Council member Marko Kranjec said Monday.
Appearing at an event here, Kranjec was asked about a rate hike
next month. He responded by reiterating that the ECB’s goal is price
stability. He then noted that, “[ECB President] Trichet gave his opinion
about that at the last press conference, and the opinion is known.”
Kranjec added: “Of course, higher interest rates make for higher
expenses for [Eurozone] countries.”
At his last monthly press conference following the ECB’s monetary
policy meeting on March 3, Trichet said a rate hike in April was
“possible,” given that inflation risks had tilted to the upside and the
ECB had shifted to a “strong vigilance” stance — a term frequently used
by the central bank to tell markets that a rate hike is likely the
following month.
Last Friday, Trichet told reporters in Frankfurt that he had
nothing to add to his March 3 comments, despite the economic and
financial uncertainty caused by the ongoing crisis in Japan. “I stick to
what I had said before. I have nothing to add, nothing to withdraw,
absolutely nothing. No new message at all,” the ECB chief said.
But moments later, he said that the ECB would “think deeply” about
the economic implications of the Japanese disaster.
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