Trichet says recent euro zone data show economic activity ´on the downside´
Wednesday, May 4, 2005 1:26:18 PM
afxpress.com
Trichet says recent euro zone data show economic activity 'on the downside' FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said recent data show the short-term outlook for economic activity are on the downside with some of the downward risks partially materialising over the past few months
Speaking at the start of a news conference after the ECB Governing Council left its key interest rates unchanged, Trichet also said the bank sees no significant evidence of a build-up of underlying domestic inflationary pressures in the euro area
"Regarding the current situation and the short-term outlook for economic activity, recent data and survey indicators are, on balance, on the downside," he said
He said some of the downward risks to economic growth identified earlier, in particular those related to persistently high oil prices, appear to have partially materialised over the past few months, he added
"The exceptionally low level of interest rates across the entire maturity spectrum provides considerable support to economic activity in the euro area. At the same time, continued vigilance with regard to upside risks to price stability is warranted," he said
He said at the same time, when looking beyond the short term, conditions remain in place for stronger real growth
"Downside risks to economic growth continue to be related to oil price developments and global imbalances," he added. He said there continue to be upside risks to price stability, relating mainly to oil price developments and their potential to lead to second-round effects stemming from wage and price-setting behaviour |
