Will monitor closely all developments ahead, he says. This is the signal for further cuts. His take on the economy is for weakness to extend through 2009 with a potential upturn in 2010.
Stimulus and commodity price drops could stimulate demand while financial disruptions could crimp demand, he says.
Base effects (compared to high rates of inflation this time last year), so they are ignoring the big drop in CPI of late, according to Trichet.