The ECB decided to keep interest rates unchanged at 4%. This was mostly expected, however Trichet took a very aggressive stance on inflation.
Below are some statements coming from this conference...
-Recent data confirmed upside risk to inflation pressure
-Economic fundamentals remain sound
-Will continue to pay close attention to developments in financial markets
Q3 07 GDP at .7% GDP, inline: domestic demand remained main force in euro zone , sustained nature of economic expansion, robust employment growth, annual gdp growth expected 2.4 to 2.8% in 2007; 1.5 – 2.5% in 2008; 1.6 – 2.6% in 2009.
-sustained GDP growth, US weakness will be offset by emerging economies
-annual inflation rate increased strongly
-energy prices having strong upward impact on inflation
-inflation rate expected to remain well above 2% in coming months and expected to moderate in 2008
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