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ECB Press Conference Bullet Points

Written by A Forex View From Afar on Thursday, February 07, 2008

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The ECB held its Press Conference after the decision to hold Interest Rates at 4.00% today. Here were the points covered by the Head of the Bank, Jean Claude Trichet;

  • The decision reflects that price stability in medium term are to the upside
  • Short-tern inflation must not spill over into the long-term
  • Economic Fundamentals are sound, risk to growth are on the downside
  • Moderate pace of Growth, inline with Business and Consumer Confidence
  • Slow-down of Trading Partner Growth will impact GDP numbers, Exports may be affected
  • Euro-Zone has maintained stability in labor Markets
  • Consumption growth will increase in-line with labor growth
  • Economic activity growth may be impacted by Financial Markets
  • Additional Commodity price increases may impact growth
  • Inflationary numbers were 3.2% in January 08
  • The Growth Rate will continue at around 2%, with a slow-down later in the year
  • Looking at Commodity price increases to moderate, and will not now affect Wage and Price growth
  • High Capacity Utilization and strong labor Markets
  • Second Round Inflation, due to excessive wage demands, must be contained
  • Monetary Analysis remains vigorous at 11% per annum, temporary factors include a flattening of the Yield Curve
  • Underlying Rate of Monetary expansion, Loans to the private sector and Business, remained very strong
  • A cooling Housing Market has nor affected Loan amounts issued
  • Little evidence that Financial Markets have not lead to a huge move to other Financial Instruments
  • Strong Loan growth has not been impaired by the Credit-Crisis
  • Upside Risks to price stability, but sound growth, the ongoing risk surround the unusually high volatility in Financial Markets has Growth forecasts lower in the near-term, but Inflation targets are still in place for the year

We covered this in the Global News Section of our website. You can check it for further news and analysis.

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