Besides the boilerplate comments about inflation being anchored, emergency measures are temporary, the important part of the prepared remarks are the new staff forecasts--slightly higher forecasts this year, a little less next year and slightly higher inflation forecasts, largely a function of higher commodity prices.
**2011 GDP central forecast 1.2% down from 1.5%
**2010 CPI central forecast 1.5% from 1.2%
**2011 CPI central forecast 1.6% from 1.5%
Trichet seems to play down the contraction in M3 saying it understates the underlying trend and that pressure on it may be easing.
Even though the euro has shed about a third of a cent since Trichet has begun talking the market's interest in the refi operations and sterilization of bond purchases is still awaited to be addressed.
Initial Take on ECB
![Initial Take on ECB]()
Reviewed by Marc Chandler
on
June 10, 2010
Rating:
