The head of the European Central Bank (ECB) stated that key interest rates will not rise soon in the Eurozone amid uneven recovery, and dismissed speculation about a possible exit of Greece from the Eurozone.
At the ECB’s monetary policy council meeting on Thursday, it was decided that interest rates will remain at a record low of one percent for the eighth consecutive month in the context of an expected uneven economic recovery. Jean-Claude Trichet warned at a press conference held after the meeting that the weak recovery, which began at the end of last year, is very likely to be uneven, with moderate economic growth. Among the reasons for maintaining the current interest rates, he also cited relatively weak inflationary pressures, adding that inflation expectations remain in line with the ECB’s objectives.
Regarding Greece, he ruled out the possibility of special assistance to address the debt crisis that has affected that Eurozone member. “No government or state can expect special treatment in addressing the public finance crisis,” Trichet said at the press conference. However, Trichet firmly rejected speculation that Greece could be forced to exit the 16-member Eurozone, telling reporters at the press conference that he does not want to “comment on absurd hypotheses.” (H)
