ECB's Trichet Warns of "Explosion" in Inflation
By: Reuters
There is a risk inflation will "explode" if the European Central Bank does not act decisively to counter it, ECB President Jean-Claude Trichet was quoted on Wednesday as saying.
"If we are not resolute, there is a risk that inflation will explode. If we act decisively, then we can master the situation," he told German weekly Die Zeit, according to an advance copy of a feature about Trichet to appear on Thursday.
The comments were made on June 23.
Figures on Monday showed euro zone inflation hit a record 4 percent in June, and the ECB is expected to raise its main interest rate when it meets on Thursday.
There is a risk inflation will "explode" if the European Central Bank does not act decisively to counter it, ECB President Jean-Claude Trichet was quoted on Wednesday as saying.