Jean-Claude Trichet, the president of the European Central Bank, reiterated the need to keep a leash on rising prices yesterday, saying international central bankers were "all devoted" to anchoring inflation expectations.
Speaking after a meeting of BIS, the central bankers' bank, where he chaired the talks, he highlighted emerging economies, where "growth is very rapid and [overheating] is a threat". He explained: "We're in an environment where we have a spike in the price of oil, commodities – it's more acute in the present circumstances." He added that, while central bankers around the world were resolved to tackle rising prices, that "doesn't mean we take the same decisions".
The comments came after Mr Trichet last week raised the prospect of an interest rate rise in the eurozone next month. He said the ECB would exercise "strong vigilance" – a phrase that in the past has signalled a rate rise – over rising inflation. "When we have a shock – and we have a shock – our responsibility is to prevent a second round of effects [from high oil prices]," he said.Reuse content