24-01-2008
European Central Bank sends signal over interest rates
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The president of the European Central Bank (ECB) has confirmed the institution's commitment to tackling the effects of inflation.
Jean-Claude Trichet announced the bank's position, while at the same time confirming the institution's belief that economic growth across the eurozone will continue.
Presently, the zone's rate of inflation is above-target at 3.1 per cent.
"Let me start by recalling the main components of any framework for safeguarding financial stability," said Mr Trichet.
"At the national level, a financial stability framework is based on three main components: crisis prevention, crisis management and crisis resolution."
Mr Trichet's comments were made at a recent keynote address at the European Parliament, on European Financial Supervision and Crisis Management on Financial Markets.
The ECB's inflation rate target is to keep below, but near, to two per cent and its marginal lending facility is currently at a rate of five per cent.
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