Trichet sees intensified downside risks to growth
Downside risks to economic growth in the euro zone have intensified, European Central Bank President Jean-Claude Trichet said today, taking a slightly more gloomy view than a month ago.
"The economic outlook remains subject to particularly high uncertainty and intensified downside risks," Trichet told a news conference after the ECB held rates at 1.5 percent as expected.
"A very thorough analysis of all incoming data and developments over the period ahead is warranted," he said.
Last month, Trichet merely said the risks to the economic outlook were "on the downside."
Euro zone inflation jumped to 3.0 percent last month, well above the ECB's target of close to but below 2 percent.
"Inflation has remained elevated ... and is likely to stay above 2 percent in the months ahead but to decline thereafter," Trichet said.
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