Trichet moves away the possibility of reducing the types of interest

    The high-priority objective of the European Central bank is to watch the inflation and to try to find the stability of prices, condition fundamental to favor the economic growth based on the confidence. This means that given the present situation of inflation in that we lived, the possibility of a cut of types moves away. Although the American Federal Reserve (Fed) or the Bank of England (BoE) has already carried out slopes of types, the BCE does not seem that in the short term it is going to make the same decision. 

    The president of the BCE, Jean-Claude Trichet, already has warned in several occasions of what it is the main target of the institution and although he has admitted that there is a high degree of uncertainty about the future of economic growth in the Member States of the Eurozona, due to the financial turbulences, the risks that exist for the stability of prices, make necessary that the priority of the BCE is the one to anchor the inflation expectations. Again the binomial inflation-deceleration is put in relief.

    The slope of types could suppose the possibility of cushioning the economic deceleration but also it would entail the high risk of harnessing a greater inflation in the Eurozona, that already of in case it is important. This does not mean that they are not known or the present economic problems are unknown, Trichet recognizes the risks for the growth of the impacts of the turbulences and the increases of the energy and foods. In addition also it is noticed of the damage that the present financial situations can report to the great European banks. But the high-priority preoccupation of the BCE is clear: to reach the stability of prices.

    Jean-Claude Trichet has affirmed that during most of the 2008 rate of the inflation of the Eurozona he will be significantly over 2% and the period of high rates of inflation is going to be longer than was anticipated. The risks for the inflation are the increases in the price of the crude one and foods, also wage increases superiors in predicted and the ascents of the administered prices and the indirect taxes. Therefore, given to the present situation and the priorities of the BCE, a cut of types does not glimpse in the short term, but rather a continuity in the anchorage of the price of the money in 4%.

    The words of Trichet also have certain optimistic content, since it affirms that the economy of eurozona has solids foundations and importanes does not undergo imbalances. It anticipates that the investment will follow the rise and that the private consumption will contribute to the growth of the economy, thanks to the increase of the use and the reduction of unemployment.