21 February 2011

ECB Trichet comments post G20 Paris Meeting

"The price of energy and commodities is something we are looking at very very carefully with a view to avoid second-round effects, to avoid that price increases could be enshrined in inflation in the medium term. We are responsible for preserving stability in the medium term. No second-round effect is our moto. Inflationary pressures coming from the price of oil, energy and commodities are to be taken seriously."

1 comment:

ratestrader said...

That's where the ECB and the Fed differ philosophically. The ECB is prepared to hike if inflation is high even if it comes from high oil prices but the Fed will say as long as core CPI isn't rising, inflation isn't a problem