I wonder where the mea culpa is for having been at the helm when the highest inflation in 15 years appears.
Does not Mr. Trichet realise that his inaction in not increasing rates since when he took his post was directly responsible for where we are today?
An inconvenient fact so not to be mentioned!
Onésimo Alvarez-Moro
See article:
The global financial turmoil could last longer and have a broader impact on the eurozone economy than previously expected, the European Central Bank warned onThursday, even as it underlined its hard-line stance on inflation by leaving interest rates unchanged.
Comments by Jean-Claude Trichet, ECB president, highlighted the risks and uncertainty the Frankfurt-based institution sees surrounding the eurozone economic outlook. But with inflation at 3.5 per cent, the highest for almost 16 years, his tone after the ECB’s latest interest rate meeting suggested little chance of an early cut in borrowing costs, analysts said.
“It is a central bank particularly uncomfortable with the inflation rate, but there is no way that they can hike rates at the moment, so they stay where they are,” said Erik Nielsen at Goldman Sachs.
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