ECB
European Central Bank President Jean- Claude Trichet said there's no end to financial-market turmoil in sight and policy makers will continue to take “appropriate measures'' if necessary.
“We are observing an ongoing, significant market correction,'' said Trichet at a press conference after meeting finance ministers and central bankers from the Group of Seven nations in Tokyo.
G-7 policy makers ended their meeting by noting that the U.S. economy may slow and hurt world growth, without proposing measures to counter the threat.
Trichet echoed his remarks at a Feb. 7 press conference in Frankfurt, saying that inflation risks in the 15-nation euro region are on the “upside'' and that the ECB needs to anchor inflation expectations first cash advance. The ECB left its benchmark rate at 4 percent this week.
Trichet declined to be drawn on whether he welcomed the market reaction to his comments this week.
“We had no call for an increase of rates but equally we had no call for a decrease of rates,'' said Trichet. “It's important that these two messages are fully understood.''
Luxembourg's Jean-Claude Juncker, who chairs the monthly meeting of the euro region's 15 finance ministers, said some countries in the bloc may have room to loosen their fiscal policy to boost growth.
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