European Central Bank: Press briefing - transcript
Transcript by Mr Jean-Claude Trichet, President of the European Central Bank, following the
meeting of the Governing Council, Frankfurt am Main, 2 August 2007.
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Let me just say a few words and then I will be ready to respond to questions, as usual.
Recent economic developments and survey indicators confirm that sustained economic
growth continued in the euro area through the second quarter. Rising oil prices, emerging
capacity constraints and the potential for stronger wage and cost dynamics, among other
factors, imply upside risks to price stability over the medium term. The existence of upside
risks to price stability at medium to longer-term horizons is confirmed by the strength of the
underlying rate of monetary expansion: strong vigilance is therefore of the essence to ensure
that risks to price stability over the medium term do not materialise.
Both, our previous economic and monetary analysis as expressed in particular in the last
press conference have been fully confirmed by the ongoing information we have received
since the last meeting of the Governing Council. Let me also stress that we never
precommit, we decide at the moment of the meeting of the Governing Council on the basis of
the information that we have, facts and figures, and according to the judgement that we
make at that moment. I re-emphasise that we never pre-commit.
Let me also say that we are experiencing a period of market nervousness, a period where we
see volatility in markets in general and re-appreciation of risks. We think that these
developments in financial markets deserve attention. Shifts in market sentiment need careful
monitoring. We will continue to pay great attention to the developments in the market over
the period to come.
I am now open to questions.