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ECB Hikes Rates By 25 bps As Expected
Date 07/04/2011 16:00  Author webmaster  Hits 1163  Language Global
07 APR 2011

By Tyler Durden | Zero Hedge

EURUSD now rising gradually as JC Trichet language in conference more hawkish than expected, although he does say the ECB did not decide hike was first in series.

• Trichet says rates across entire maturity spectrum remains low
• Says ECB did not decide hike was first in series
• Interest rate decision was unanimous
• Increasing CPI rates largely reflect commodity prices
• Upside risks to inflation outlook
• Medium term inflation outlook are on the upside
• Liquidity provision to be adjusted when appropriate
• Latest data confirms banks have continued to expand lending to private sector
• Positive lending flow becoming more broad based
• Inflation monitoring very closely
• Risks to economic outlook are broadly balanced
• Downside risks to growth from renewed tensions in financial markets, oil prices, protectionism, global imbalances
• Paramount that rise in HICP inflation does not lead to second round effects

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